The transaction, led by BNP Paribas and Citigroup, is the inaugural bond issue for the Group with the proceeds forming part of the funding requirements for Batelco’s recently announced acquisition of the Monaco & Islands business units of Cable & Wireless Communications (CWC).
The issue was priced at a spread of 325 basis points over 7-year US Treasuries, for a yield of 4.342% and coupon of 4.250% per annum, following a week long road show covering the Middle East, Asia and Europe. The pricing, at the tight end of revised price guidance, reflects the strong interest and participation of a well diversified group of global investors.
The transaction attracted a $4.8 billion order book across 255 accounts with allocations of 38% to Middle East investors, 12% to Asia, 22% to Europe, 27% to UK and the remaining 1% to other investors. By investor type, the initial split was 48% to asset managers of funds, 34% to banks, 8% to private banks, 3% to insurance companies and pension funds, 3% to hedge funds and 4% to other investors. The bonds, which will settle on May 2, 2013, will be listed on the Irish Stock Exchange.
“We are extremely pleased with the success of this transaction, Batelco Group’s first foray into the international bond market. The strong demand, attractive pricing and the extremely quick take up of the issue underscores the confidence of the global markets in our strategy, business model and prospects as we grow from a regional operator of reference into a global telecommunications player. In addition, the transaction also highlights our strong credit quality, strengthens our funding mix and provides us with greater financial flexibility,” Batelco Group CEO, Shaikh Mohamed bin Isa Al Khalifa said.