The money raised in this operation aims, among others, to finance the current activity and international expansion and extend the maturity of the company’s debt.
Over 4,300 investors participated in Mota-Engil’s €70 million sustainable bond issue, according to the results of the operation disclosed this Tuesday by Euronext.
Demand exceeded €93 million, 1.34 times the amount sought by the construction company, reported the Portuguese stock exchange operator. The money raised in this operation aims, among others, to finance the current activity and international expansion and extend the maturity of the company’s debt.
At stake were two offers that took place simultaneously in recent weeks: an offer to subscribe to new securities linked to sustainability indicators with an interest rate of 5.75% and a 5-year maturity; and an offer to exchange bonds maturing this year for these new securities.
Concerning the subscription offer, with demand reaching €79 million, almost 3,600 investors bought a total of €55.15 million in bonds. A further 716 investors decided to exchange their old bonds for these new securities (plus a premium of €2.375 per bond) for €14.85 million.
Due to the operation’s sustainability factor, Mota-Engil has committed to improving its sustainability performance until 2026. If it does not meet the target, it will pay an additional remuneration of €1.25 per bond on the final repayment date of the loan.
What is the relevant indicator? Decrease the work accident rate from 4.55 on December 31, 2021, to 2.76 on December 31, 202