Mota-Engil: demand for company’s bonds fairly outweighed supply

  • ECO News
  • 26 November 2018

The company's share value increased by 7%, as the demand for the company's bonds outweighed supply. Mota-Engil locked €30m more with the investor's vested interest in the company.

Demand for Mota-Engil’s bonds outweighed the supply by €30m, standing above the expected €110m value defined by the construction company, having reached €140m. The construction company announced this Monday the results of their 4-year bonds offering that had kicked off on the 12th of November and closed last Friday.

The number of investors seeking their share of new debt issuance from the Portuguese construction company went up to 4,000 whereas 2,000 wanted in on the exchange offers.

“Mota-Engil 2018/2022 Fixed Rate Bonds” have a fixed interest rate of 4.5% per year and will be subject to allotment of all the registered orders after these have reached the maximum amount of the offer, with a minimum subscription value of a thousand euros per investor. In this case, €55.22m were issued, representing 50.2% of the total.

The subscription was also complemented by two partial and voluntary Public Offerings ( OPT ) on securities issued in 2014 with maturity until 2019 and securities issued by the company in 2015 with maturity until 2020. €54.78m were placed in this offer, the equivalent to 49.8% of the total. In the exchange offer, there was full integration,  with no need of applying the allotment procedure.

The transaction — 130 thousand bonds were issued, with a nominal unit value of €500 — aimed at retailing, is part of the company’s diversification strategy. Caixa – Investment Bank, Haitong Bank and Novo Banco were the organizers and global coordinators of the offer.

The company’s share values increased by 7.24% reaching €1.63, which was the highest increase in the national stock market today.