Investors show strong interest in Atlantia fundraising

The Italian toll road operator has successfully raised €1.5bn via two bond issues but received applications from institutional investors exceeding €4.5bn. The funds raised will allow Atlantia to fund capex and meet its refinancing needs through to 2013.

Italian toll road operator Atlantia has successfully issued two long-term bonds worth €1.5 billion, with institutional investors showing strong interest in the Italian firm’s fundraising.

Atlantia issued a seven-year, €1 billion bond paying an annual coupon of 3.37 percent and a yield to maturity of 3.46 percent, or 122 basis points above the reference rate. It also issued a 15-year, €500 million bond with a coupon of 4.37 percent and a yield to maturity of 4.43 percent, or 155 basis points over the reference rate. The issues received applications from institutional investors exceeding €4.5 billion, Atlantia said in a statement.

“This transaction will enable us to fund investment and meet our refinancing needs through to 2013 and beyond, bearing in mind that the financing raised today is in addition to approximately €4 billion in existing cash and long-term borrowings,” chief executive Giovanni Castellucci said in a statement.

The issues are part of Atlantia’s €10 billion Medium Term Note Programme, rated by Moody’s (A3), Standard & Poor’s (A-) and Fitch (A-). The programme was launched in 2004 and has resulted in €8.15 billion worth of issues to date, Atlantia said.

Banca IMI, BBVA, Credit Agricole, Goldman Sachs, Mediobanca, Natixis and Unicredit managed the two issues, to be listed on the Irish Stock Exchange. The settlement date for the bond issues has been set for September 16.