Brisa Concessão Rodoviária, S.A. (“BCR”), the main concession of Brisa, successfully issued a new corporate bond on 10 May 2017 in an aggregate principal amount of €300m. The senior fixed rate secured bonds have a maturity of May 2027 (10 years) and an annual coupon of 2.375%. The securities were placed with high quality institutional investors in the international capital markets and are listed on the Luxembourg Stock Exchange.
Through this bond issue, BCR was able to capture favourable capital market conditions and satisfy its bond issuance objectives for the year. Demand was particularly high, with over 260 institutions filling in an orderbook totalling over €3.4bn (11.3x oversubscribed).
The successful issuance of the bonds reflects one of Arcus’ 2017 strategic objectives to improve the efficiency of BCR’s capital structure and lower total financing costs. The new issuance allowed BCR to lock in 10 year financing at c. 45bps below the pre-issue weighted average cost of it’s debt and over 100 bps less than the related Portuguese Sovereign debt of similar tenor.
BCR is currently rated Baa3 by Moody’s and BBB by Fitch, both with a “stable” outlook.
BCR is 70% owned by Brisa.
Barclays, Caixa-Banco de Investimento, Deutsche Bank, Millennium BCP, Novo Banco, Santander, and Société Generale CIB acted as Joint Bookrunners in the bond issue.
For further information, please contact Stephan Grillmaier (email@example.com, +44 20 7832 3415).
This information note (“Note”) has been prepared by Arcus European Investment Manager LLP (“Arcus”) for use solely for information purposes. Arcus makes no representations or warranties to the accuracy or completeness of any past, simulated or estimated performance results contain herein, and further nothing contained herein shall be relied upon as a promise by, or representation by, Arcus whether as to past or future performance results.