TAP seeks small investors for funding at rate of 4.375%
To keep a financial record healthy, TAP needs to seek funding alternatives in the market to keep honouring its commitments. That is why issuing bonds became an option.
TAP keeps planning on going public. But before reinforcing capital, it needs funding. Now, the Portuguese aviation company is thinking of doing it by issuing bonds, also available to small investors. Through this, TAP expects to attract 50M€ of investment, whose goal will be relying on a high-interest rate of 4.375%.
TAP’s debt is majorly held by the Banks which has been under renegotiation in recent years, allowing the company to reduce the costs of accessing funding. To keep a financial record healthy, TAP needs to seek funding alternatives in the market to keep honouring its commitments. That is why issuing bonds became an option.
The company will be issuing 50,000 bonds at 1000€ each with a maturity date of 2023, aiming to generate “funds able to consolidate liabilities in an extended period”, as it says in a prospectus approved by the Portuguese Securities Market Commission.
TAP is counting on the Portuguese small investors that see in these retail bonds an attractive alternative to monetising their savings. Most recently, Benfica, the famous football club, has also issued 40M€ at 3,75%, but it turned out to make 118M€ in orders.