Investors have responded positively to the first bond issue in the history of Italian supermarket chain Esselunga, according to reports.
Earlier this month, it was reported that the retailer was set to issue a bond of between €900 million and €1 billion to refinance part of a €1.5 billion contracted loan.
Based on the final placement results, however, demand surpassed offer by nine times, for a total of €9.2 billion. The retailer received €4.7 million of orders for the six-year tranche, due in October 2023, and about €4.5 billion in orders for the ten-year instalment, due October 2027.
The yields are 0.999% and 1.954%, respectively.
Credit Outlook
Il Messagero reports that the issue was managed by Banca Imi, Citi, Mediobanca and Unicredit as joint bookrunners, while Banca Akros and Ubi acted as co-managers.
The ratings of Esselunga by credit rating agencies S&P and Moody's also contributed to the end result.
The resources collected will be used to refinance some of the €1.5 billion debt contracted for the reorganisation of company following the death of founder Bernardo Caprotti.
For the Italian retailer, which is targeting €8 billion in annual turnover, it is reported the bond issue represents a general test for the planned IPO.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
