Strabag places €140m bonded loan

The Austrian developer has successfully diversified its funding sources, raising €40m more than the €100m it had originally anticipated due to what it described as ‘high investor demand’.

Strabag, the largest construction company in Central and Eastern Europe, has placed a bonded loan which has raised €140 million due to “high investor demand”. The firm had originally planned to raise €100 million.

Commerzbank Aktiensgesellschaft and Landesbank Baden-Wurttemberg acted as bookrunners for the loan, which was placed with European and Asian financial institutions as well as institutional investors from Germany. The issue was divided among two fixed interest and two variable tranches with terms of maturity between five years and seven years.

“This transaction further diversifies our financing structure: in recent years, we have issued shares and bonds and renewed our syndicated surety loan. These, together with existing credit lines and the bonded loan, give us a comforting level of flexibility and security in a volatile financing environment,” said Hans Peter Haselsteiner, chief executive of Strabag, in a statement.

In the statement, Strabag claimed its S&P corporate rating of BBB- and a stable outlook, plus “a strong brand in the German-speaking countries” meant that it presents an interesting investment opportunity for bonded loan investors.