NORTEGAS successfully closes inaugural €1.3bn dual-tranche deal
nortegas Energía Distribución successfully launched an inaugural €1.3bn dual-tranche bond transaction. The deal was structured in two tranches: a €550m 5-year bond and a €750m 10-year bond, in what was the largest inaugural bond debut by a Spanish issuer since 1999. The company, as well as the bonds, are rated BBB- (Stable Outlook) by Standard & Poor’s.
Demand from investors was oversubscribed by more than four times, a testament to the quality of the company and the stability and transparency of the regulatory environment it operates in.
nortegas is the 2nd largest gas distribution company in Spain and was acquired by a consortium comprising Institutional Investors advised by J.P. Morgan Asset Management, Swiss Life Asset Managers, a GCC sovereign wealth fund and Covalis Capital, through a vehicle structured by White Summit Capital and Covalis Capital, from EDP in July of this year.
The proceeds will be used to assure a stable and long term financial structure for the group.