BCP went to the market to get 300 million euros in debt. It received several offers that led to a fall of the coupon to 4.5%, a cost which Nuno Amado believes to be "very satisfactory".
BCP went to the market to get 300 million euros in debt. In spite of the boycott from some of the largest international investment funds, the bank headed by Nuno Amado has registered a demand much higher than supply, which made possible for the financing cost to be reduced to 4.5%. The Portuguese bank was pleased with the result.
“The cost of the issuance is very satisfactory”, Nuno Amado stated, on the sides of a banking event called Fórum Banca, promoted by the Portuguese newspaper Jornal Económico and PwC. “It is a sign of trust in BCP in terms of the international market”, the responsible for the financial institution stated. BCP was able to achieve the amount it intended: 300 million euros, with a 4.5% rate, according to Reuters. The final terms will be later revealed to the market by BCP, through CMVM (Portuguese Securities Market Commission).
The ten-year subordinated debt securities, which can be reimbursed in the end of a period of five years if BCP decides so, have generated a lot of interest. According to the information disclosed by investment banks to Reuters, investors presented orders higher than 900 million euros, meaning, three times more than BCP’s goal.
"We will not be participating in this issuance. We have each decided that the risks associated with actively investing in Portuguese public or private debt are prohibitive, as the Banco de Portugal still has not addressed the unlawful and discriminatory retransfer of notes from Novo Banco to Banco Espirito Santo in 2015. We look forward to resuming our discussions with the Portuguese authorities in order to resolve the situation quickly and re-establish Portugal as a credible destination for foreign investment.”
There was a strong appetite in spite of the boycott announced by several international investment funds, such as Attestor Capital, BlackRock, CQS, Pimco, River Birch Capital and York Capital.