Demand 3.5 times higher than offer
Lisbon - 24 April 2013 – Sport Lisboa e Benfica – Futebol, SADhas just issued €45 million in “Benfica SAD 2016” bonds, a highly successful operation where the demand surpassed the offer in over 10 million bonds just on the first sale day.
In global terms, the demand exceeded 3.5 times the offer of 9.000.000 bonds at a nominal value of €5, totalling over 32 million bonds which have raised €161 million. The bonds have a fixed annual coupon rate of 7.25% paid semi-annually, and will reach maturity on 29 April 2016.
“Funds raised through this bond issue will finance Benfica SAD’s current activity and will enable the company to consolidate its liabilities during a longer period by refinancing other transactions which are coming to term in the near future, namely the redemption of the “Benfica SAD 2013” bonds issued on 23 April 2010, and maturing on 23 April 2013 in the total amount of €40 million”, states the Benfica SAD 2016 bond prospectus.
The subscription period was held from 10 to 23 April 2013, with a minimum holding of 20 bonds (€100) and in multiples of 1 bond (€5) thereafter. More than 7,200 investors have purchased SAD Benfiquista bonds.
With this new bond issue, Benfica SAD’s financing through the Portuguese capital market has now reached a total of €160 million. Since entering the stock Exchange in 2007, under the leadership of Luís Filipe Vieira, SAD has increased its capital in to €40 million, and between 2004 and 2013, has raised a total of €120 million through bond issuance.
Since 2010, companies listed on the Portuguese Stock Exchange have raised close to €2.4 billion through the issuing of bonds placed with 150 000 private investors, paying gross interest rates between 6% and 9.25%. It should also be noted that up until now 2012 was the year with the highest bond issuance aimed at private investors, reaching well over €1.9 billion.