Şişecam’s $1.1 Billion Eurobond Issues Garner Over $3.5 Billion in Demand

by GlassBalkan
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Şişecam's Commitment to Sustainability

Şişecam, a leading global glass and chemicals manufacturer, recently made waves in the international financial markets with its successful issuance of $500 million and $600 million global bonds (Eurobonds) through its UK subsidiary, Şişecam UK PLC.

The bonds, with 5-year and 8-year terms, respectively, were aimed at institutional investors worldwide and managed to attract an overwhelming demand exceeding $3.5 billion from international funds and financial institutions.

The issuance, authorized by reputable financial institutions including Citigroup Global Markets Limited, HSBC Bank plc, J.P. Morgan Securities plc, and Bofa Securities, featured coupon rates of 8.250% and 8.625%. The high demand for these bonds was truly global in nature, with 38% of the bonds being purchased by funds and financial institutions from the USA, 37% from the UK, 15% from Europe, and 10% from Asia and the Middle East, particularly from institutions based in Hong Kong.

Prof. Dr. Ahmet Kirman, Chairman and Executive Member of the Board at Şişecam, highlighted the company’s track record of strong investor interest in its bonds, both domestically and internationally. He emphasized that Şişecam’s credit ratings, rated above the country’s ratings by Moody’s and Fitch at B2 and BB-, are a testament to the company’s global success. The overwhelming demand for these Eurobonds reaffirms the confidence that the global market has in Şişecam.

Furthermore, Gorkem Elverici, CEO of Şişecam, underscored the company’s commitment to effective liquidity management and creating sustainable value. He mentioned that Şişecam will continue to invest in sectors where it operates and will utilize various capital market and financing tools to support its growth. In addition to the Eurobond issue, Şişecam has recently undertaken significant bond issuances in Turkey and plans to adopt a tailored approach to financing in different currencies as needed.

Key Figures Regarding Şişecam’s Eurobond Issue:

– Nominal amounts of $500 million with a 5-year term and $600 million with an 8-year term, featuring fixed-interest bonds with coupon rates of 8.250% and 8.625%.
– Total bids from international funds and financial institutions exceeded $3.5 billion.
– Meetings for the Eurobond issue were held in London with approximately 54 investor institutions participating.
– Since 2013, Şişecam has issued a total of $2.3 billion in Eurobonds on international markets.
– The $700 million Eurobond issue conducted by Şişecam in 2019 also received significant demand from international investors.

In conclusion, Şişecam’s latest Eurobond issues have not only set a new benchmark in the corporate bond market but have also demonstrated the company’s strong global reputation and investor confidence. As Şişecam continues to expand its presence in international markets, its strategic approach to financing and investment will undoubtedly contribute to its sustained growth and success in the future.

 

 

Source:Şişecam with additional information added by GlassBalkan

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