Euronext Raises €1.8bn In Bond Issue
Euronext, the leading pan-European market infrastructure, has successfully priced a three-tranche senior bond offering representing a total amount of €1.8bn.
The bonds will be admitted to trading on the regulated market of Euronext Dublin as of 17 May 2021 and are rated BBB by S&P. As well as on other electronic trading platforms, the 5, 10 and 20-year bonds will be available for trading on the MTS BondVision and MTS BondsPro venues, which are now part of the Euronext product suite following the acquisition of Borsa Italiana Group. The bonds will be settled through VP Securities, Euronext’s Danish CSD.
We are delighted to announce the successful launch of a €1.8 billion bond issue, listed on Euronext Dublin. The offering, which was more than 2.7 times oversubscribed, illustrates investors' strong confidence in Euronext’s growth ambitions, strategy and solid credit profile. pic.twitter.com/OgAz7htzMm
— Euronext (@euronext) May 7, 2021
The main features of the issue are as follows:
- Tranche 1: 5-year bond worth €600 million (maturing on 17 May 2026), with an annual coupon of 0.125% (ISIN: DK0030485271)
- Tranche 2: 10-year bond worth €600 million (maturing on 17 May 2031), with an annual coupon of 0.750% (ISIN: DK0030486402)
- Tranche 3: 20-year bond worth €600 million (maturing on 17 May 2041), with an annual coupon of 1.500% (ISIN: DK0030486592)
The final order book reached an amount of c. €5 billion and was more than 2.7 times oversubscribed. The success of this transaction illustrates investors’ strong confidence in Euronext’s growth ambitions, strategy and solid credit profile.
The offering will allow Euronext to extend its maturity profile and further diversify its debt investor base.
The net proceeds of the issue will be used to partially refinance the acquisition of the Borsa Italiana Group, completed on 29 April 2021 for a final consideration of €4,444 million.
Bank of America, Credit Agricole CIB, HSBC and JP Morgan acted as Joint Global Coordinators, and ABN AMRO, BNPP, IMI Intesa, Mediobanca, SGCIB, UniCredit and ING Securities acted as Joint active bookrunners on the transaction.
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext said:
“We are delighted by the strong support seen today on this €1.8 billion bond issue. This demonstrates the confidence of our investors in our strategic acquisition of the Borsa Italiana Group that creates the leading pan-European market infrastructure. This bond, to be listed in Dublin, traded on MTS venues and settled through VP Securities, in Denmark, is the proof of concept of the Euronext federal model, which aims to strengthen the backbone of the Capital Markets Union in Europe”
The order book was the largest for a sovereign green transaction.
RBC Capital Markets paid more than $800,000 to resolve charges that it engaged in unfair dealing in munis.
Electronification of the municipal bond market also presents a large opportunity.
The success of Northbound trading showed electronic execution is way forward for the bond market.
Investors will be able to better assess the economic stability and creditworthiness of issuers.