Thus, the bank said “that today it carried out an issue of senior preferential debt in the amount of 300 million euros, with a term of three years and an option for early repayment by the bank at the end of two years”.
According to the financial institution, “the bonds have a 100% issue price and an annual interest rate of 3.5% in the first two years, and three-month Euribor plus margin in the following year”.
The bank also informed that “the issue was placed exclusively with institutional investors following the ‘roadshow’ [apresentação] on the 9th and 12th of July, during which Novo Banco held meetings with more than 40 investors”.
Thus, the final allocation “included investors from the UK (36%), Switzerland (18%), Benelux (16%), France (10%) and Portugal (9%), with asset managers representing more than 60 %”.
The institution also indicated that “settlement will take place on July 23, 2021”, noting that “this inaugural senior issue is part of the financing plan defined to meet the Minimum Requirements for own funds and Eligible Liabilities (“MREL” requirements ) and will improve the financing profile of Novo Banco”.
The operation’s managers and intermediaries were Credit Suisse, Deutsche Bank, JP Morgan and Nomura.
Novo Banco expects to have profits of 154 million euros in 2021, according to the 2020 report of the institution’s Monitoring Committee, which says that the positive result will be supported in part by the reduction of provisions to cover losses.
According to the document that Lusa had access to, the Medium Term Plan for 2021-2023, approved in February 2021, provides “that Novo Banco will present profits of 154 million euros in 2021 (despite doubts about the impact of the end of the moratoriums), of 279 million euros in 2022 and 288 million euros in 2023, “putting an end to a long cycle of huge losses and losses of own funds”.
According to the same commission, this scenario “will be partially made possible by the expected decrease in net provisions”, which will go from 1,199 million euros in 2020 to 209 million euros in 2021, 122 million euros in 2022 and 119 million euros in 2023 .
Source: Correio da Manhã by www.cmjornal.pt.
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