The leu-denominated bonds, which come with an about 5% interest were oversubscribed three times, while the euro-denominated bonds, about 3% interest, were oversubscribed two times, market sources say.
Cable Communication System (CCS), the parent company of cable TV operator RCS & RDS released 10-year euro bonds (EUR375 million) and leu bonds (1.43 billion lei or EUR317 million).
The RCS&RDS group, which has operations in Romania, Italy, Hungary and Spain, posted EUR793 million consolidated revenue in the 12-months ended June 2016, while operating income stood at EUR255 million.
The group has just begun a more extensive process to refinance its EUR700 million to EUR800 million debt to banks and the strategy is to have a bigger portion of the debt moved to the leu, the currency of most of RCS&RDS revenue. After the issue in London, a new issue of leu bonds will be released in Romania, followed by a syndicated loan and RCS&RDS is also preparing for an about EUR100 million share issue on the Bucharest Stock Exchange in the spring.
Citibank and JP Morgan served as lead managers in London. This is one of the biggest financing operations on international markets attempted by a Romanian company in twenty years, competing with the Romanian government paper. In September 2016, Romania borrowed EUR1 billion for twelve years at 2.15% a year.
(English version by Loredana Fratila-Cristescu)