Ljubljana, 19 June (STA) - Energy company Petrol has closed the books in a EUR 265m corporate bond issue. The five-year bond will be issued with a 3.25% annual interest rate and 3.4% yield. The orders reached EUR 1bn, the Ljubljana-based company said on Thursday.
The book of orders was closed after only three hours on Monday, Petrol said. Quality orders were placed by more than 120 institutional investors and the total value reached EUR 1bn, according to the press release.
The majority (89%) of the transactions were carried out with fund managers and insurers and the rest with banks.
Over 20% of the investors are located in the UK, 22% in Germany and Austria and 7% in Slovenia, while 49% are located in other EU countries and 1% elsewhere.
Credit rating agency Standard & Poor's attributed the bonds the rating BBB-, which means the company has the capacity to meet its financial commitments but unfavourable economic conditions or changing circumstances are likely to weaken this capacity.
The issue followed a four-day road show in London, Frankfurt, Amsterdam, Paris and Vienna during which company representatives met with 30 international investors.
CEO Tomaž Berločnik said in the press release that the proceeds will be used to repay outstanding loans among other things.