El Corte Inglés places a bond issue worth 500 million euros
What: El Corte Inglés has successfully placed senior bonds worth 500 million euros with strong investor demand exceeding the offer by seven times.
Why it is important: This bond issue marks a significant milestone for El Corte Inglés, reflecting strong investor confidence and providing the company with diversified financing sources. The funds will support general corporate needs and the issuance is backed by an "investment grade" corporate rating from Standard & Poor's and Fitch, highlighting the company's solid financial position.
El Corte Inglés has completed a highly successful bond placement, raising 500 million euros through senior bonds maturing in June 2031 with an annual coupon of 4.25%. The issuance, aimed at qualified investors, saw demand exceeding the offer by approximately seven times, with 240 investors participating. This is the most oversubscribed operation by a Spanish company since November 2020. The strong demand and the investment grade rating from Standard & Poor's and Fitch underscore investor confidence in El Corte Inglés, bolstered by its robust financial performance in the 2023-2024 fiscal year. The company reported a 5.4% increase in revenue to 16,333 million euros and a 73.7% rise in recurring net profit to 359 million euros. The funds from the bond issue will be used for general corporate purposes, further strengthening the company's financial flexibility.
