Cepsa completes the largest bond issue in its history for €750m: Advisors
Cepsa has completed a new bond issue for €750 million, an amount higher than previous issues due to the large overdemand and which highlights the strong attractiveness of the company from an investment point of view. The transaction closed with an annual coupon of 4.125% and maturity in April 2031.
This new issue represents Cepsa’s largest bond offering in its history, and its return to the capital markets after four years, and introduces an innovation by combining it with 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, and will allow Cepsa to strengthen its liquidity position and diversify its sources of financing, while increasing the average maturity of its debt.
This transaction, which makes Cepsa the first Spanish company in the sector to access the bond market in 2024, and the second in Europe, strengthens the energy company’s capital structure and supports the ambitious investment plan of its Positive Motion transformation strategy, with which it aims to become a European benchmark in the production of green hydrogen, 2G biofuels and the deployment of a network of ultra-fast electric chargers.
The bond has been accepted for listing on Euronext Dublin and this transaction diversifies the company’s funding sources to strengthen its liquidity position.
Advisors
Freshfields Bruckhaus Deringer corporate team advised Cepsa, alongside also on the 150 million tender offer for its bond maturing in 2025 and comprised counsel Joe Amann, senior associate Chelsey Kaka, associates Javier González Egaña and Álvaro Luaces Villegas. From the tax area, partner Bosco Montejo, and associate Javier Sánchez.
Clifford Chance advised the underwriting and arranging banks led by capital markets and English Law partner Antonio Henriquez, and also comprised senior associate Jonathan Astbury, senior associate Francisco Pizarro and trainee solicitor Bethany Campbell. Senior counsel Roberto Grau provided Spanish tax law support.
