- The transaction, with a 1.350% coupon, allows the company to extend terms and reduce its debt servicing costs
- The issue comes under the 5 billion-euro Programme that the company repatriated to Spain in November 2018
Today BME has admitted to trading a new 8-year bond from Inmobiliaria Colonial for 500 million euros, which comes under the 5 billion-euro Programme that it registered in November 2018. This bond is part of a debt buyback and new issuance transaction that has allowed Colonial to extend its debt average term and reduce financing costs. The issue’s nominal amount per unit is 100,000 euros with demand exceeding 1.7 billion, which has allowed the interest rate to be reduced to midswap level for that term plus a spread of 170 basis points. The initial spread range oscillated between 195 and 200 points, but the coupon was finally set at 1.350%.
The company has had the participation of the ECB in the issue as it owns a BBB + rating by S&P (two notches above the minimum required)
Colonial’s placement mandate for this issue was granted to a syndicate of Joint Bookrunners made up of BNP Paribas, Caixabank, Credit Agricole CIB, Deutsche Bank Aktiengesellschaft, Natixis, Banco Sabadell, Bankinter, Barclays Bank, BBVA, JPMorgan Securities, Mediobanca, Morgan Stanley, Merrill Lynch International, Natwest Markets and Société Générale. Freshfields Bruckhaus Deringer has advised the issuer on Spanish and English law, Ramón y Cajal Abogados about Spanish law and Clifford Chance has advised the Dealers on Spanish and English Law.
"We are very pleased with this transaction and expect that other companies will register their issues in Spain," said Jorge Yzaguirre, Director of Markets and Market Data at BME.
Inmobiliaria Colonial was the first IBEX 35 company to repatriate its fixed income issues following the measures adopted by the Spanish stock market supervisor CNMV and BME at the end of 2018 to encourage issues in Spain, with other major companies such as Endesa and AENA following.