Cepsa completes € 750 million bond issue

Cepsa completes € 750 million bond issue

The bond issue, maturing in 2031, reinforces the financial strength of the company and supports the ambitious investment

  • By ICN Bureau | April 09, 2024

Cepsa has successfully completed a new bond issue for € 750 million, well above previous issues and with a large oversubscription, underscoring investor confidence in the Company. The issue closed with an annual coupon of 4.125% and maturity in April 2031.

The new issue is the largest bond offering in Cepsa’s history and marks its return to the capital markets after four years. It was also unique in that it combined a partial repurchase of its bond maturing in February 2025. The issue will be admitted to official listing and trading on the regulated market of the Irish stock exchange, enabling Cepsa to strengthen its liquidity position and diversify its sources of financing while increasing the average maturity of its debt.

The issue strengthens the Company’s capital structure and supports the ambitious investment plan set out in its Positive Motion transformation strategy to become a European leader in the production of second-generation biofuels and green hydrogen, and to develop a network of ultra-fast electric chargers.

Carmen de Pablo, Cepsa's CFO and Director of Strategy and Sustainability, said: "The success of this bond issue reflects the support from the investment community for Cepsa’s transformation strategy and their confidence in our business prospects for the coming years. This transaction diversifies our sources of financing and strengthens our liquidity position, allowing us to comfortably meet our debt commitments and investment plans."

Cepsa has been advised by HSBC, Santander and SMBC as global coordinators of the transaction and by BBVA, BofA Securities and HSBC for the partial repurchase offer of its bond maturing in February 2025.

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