Gestamp agrees to issue 500 million Euros of 7-year bonds at 3.5%
Gestamp, the Spanish transnational company, dedicated to designing, developing, and manufacturing metallic assemblies and components for the automobile, has satisfactorily completed the pricing of 500 million Euros of bonds at an annual interest rate of 3.5%, maturing in 2023. Due to the important demand generated, the initial offer of 400 million Euros has been expanded to 500 million.
The rate at which this new bond is being issued implies a considerable improvement in comparison to the previous bond issued by the company in May 2013, which marked Gestamp's debut on the bond market. At that time, it placed 350 million dollars at 5.625% and 500 million Euros at 5.875%.
The resources obtained will be utilized to pay off ahead of time the previous 2013 issue in Euros that would mature in 2020. "In 2013, under difficult market conditions, Gestamp decided to diversify its sources of financing by having recourse to the bond market. It is satisfying to confirm that investors recognize Gestamp's progress and continue to have faith in the company," said Gestamp President and CEO, Francisco J. Riberas.
Last week the company presented its financial results, which surpassed 7,000 million Euros of invoicing in 2015, reaching 7,035 million Euros during the past fiscal year. The Spanish company's sales grew 12.4% over the previous year, while operating profits went up 18.6% to 400 million.