Initial offer was increased by 50% and orderbook was two times oversubscribed
Lisbon - 17 April 2014 – Euronext, a wholly owned subsidiary of IntercontinentalExchange Group (NYSE: ICE), today announcedthat Semapa listed its EUR 150 million bond issuing on Euronext Lisbon (ISIN PTSEMFOE0003), increasing the initial offering by 50%.
The initial offer of EUR 100m, totally oversubscribed on day one, increased by 50% to EUR 150million, underlining the interest shown by retail investors for this type of product. The interest rate of this issue is six month EURIBOR + 3,25%, with a five year maturity (2014-2019).
This is the 10th Bond issuing listed on Euronext Lisbon this year, making a total of EUR 10 billion listed. Compared with the same period last year, this represents an increase on value of around 50%.
Semapa is a public company, with its head office in Lisbon and its shares were admitted to trading on the regulated Euronext Lisbon market. Semapa is one of Portugal’s largest industrial groups, with a workforce of more than 5,000 and a presence on several continents. More than three quarters of its turnover is generated on foreign markets. Its business activities consist of indirectly managing its holdings in three industrial areas: paper and pulp, through its holding in the Portucel Group; concretes and aggregates, through holdings in the Secil Group; and the environment, through its holding in the ETSA Group.
Bonds are a pivotal mechanism for creating and sustaining enterprises, business investment, and economic growth and are part of the broad spectrum of instruments listed within Euronext markets.
Euronext Lisbon has been advocating strongly for the development of the on-exchange Bond market, for corporate and non-corporate issuers, given the positive direct impact this can have on the economy, as was widely recognized during the financial crisis. Companies, government and investors have been using this market either to finance their projects or to invest their savings, and have benefited from the transparency and broad distribution of Euronext markets as an alternative to bank credit on one side, or deposits on the other.
The successful placement of the “Semapa 2014-2019” bonds and its high rate of demand, also provides an important example which can further incentivise other issuers and consolidate the development of a stronger Bond market in Portugal