Mota-Engil €110M bond issue sees demand 1.41 times supply
The value of the issue was initially set at up to €75 million, but later Mota-Engil increased the overall nominal value of the loan to €110 million, to satisfy subscription or exchange orders.
Mota-Engil, Portugal’s largest construction group, completed a €110-million bond issue in which demand exceeded €155 million, for a ratio of 1.41 relative to the amount on offer, it was announced today.
The figures were disclosed in a session to assess the results of the Mota-Engil 2021-2026 Sustainability Bonds Public Offer (“Mota-Engil 2026 Bonds”) through a Public Offer for Subscription (POS) and two public voluntary exchange offers.
At the session, which was held at the Euronext exchange in Lisbon, Mota-Engil’s CEO, Gonçalo Moura Martins, stressed that financing through the capital market represents one of the most demanding forms of scrutiny of a company.
The subscription period for the five-year bonds, with a coupon of 4.25%, began on November 15 and ran until November 26.
The value of the issue was initially set at up to €75 million, but on November 23 Mota-Engil increased the overall nominal value of the loan to €110 million, to satisfy subscription or exchange orders.
The issue was made through a Public Subscription Offer and two voluntary public exchange offers, one partial, representing the bonds “Obrigações Taxa Fixa Mota-Engil 2018/2022”, and the other, a total one, representing the bonds “MOTA-ENGIL 2018/2023”.
In the information sent at the time to Portugal’s Securities Market Commission (CMVM), the company indicated that the new bonds on offer “are linked to sustainability, to the extent that Mota-Engil has committed to act in order to promote the improvement of 1 key performance indicator (“KPI”) (index of non-fatal work accidents with sick leave), with a view to achieving a sustainability performance target (“SPT”) by reference to December 31 2025.”
The minimum investment was €2,500, equivalent to five “Mota-Engil 2026 Bonds”, in the Public Offering.
The global organisers and coordinators of the operation were Banco Finantia, Caixa – Banco de Investimento (a unit of Portugal’s state savings bank, Caixa Geral de Depósitos), Haitong Bank and Novo Banco.
