BBVA leads Almirall's inaugural bond issueMarch 20, 2014
BBVA Corporate & Investment Banking, together with Deutsche Bank, has acted as global coordinator and joint bookrunner in the recent €325 Mn 7 year-bond issue made by Almirall, the pharmaceutical company.
This operation, which was heavily oversubscribed - demand was over fifteen times the announced amount - went ahead with an interest rate of 4.625% per annum, the lowest coupon in an issue by a non-investment grade Spanish company.
Demand was highly fragmented, with over 450 accounts with amounts ranging from €100,000 to €107 Mn, and from 30 different geographical areas. Countries with particularly significant proportions were United Kingdom, with 56%, followed by France (9%), United States of America (7%), Spain (6%), Germany (6%), Switzerland (5%); while Denmark, Finland, Italy, Singapore and Ireland obtained less than 5%.
In terms of investor type, fund managers accounted for 75% of the issue, followed by hedge funds, with 11%, banks with 8%, retailers 2%, while the remaining 1% went to pension funds and insurance companies.
BBVA also took part in the roadshow with Almirall. Due to the high level of interest shown by London and Paris investors, the meetings scheduled to be held in Frankfurt and Amsterdam were cancelled.
The funds obtained from this issue, which matures in 2021, shall be used mainly to pay for a bridge loan also led by BBVA to buy the US company Aqua Pharmaceuticals.