According to official Barcelona news, Barcelona has successfully completed a €105 million bond issuance.
Barcelona has successfully completed an offering of senior secured notes totaling €105 million, due in October 2036, with a fixed coupon of 5.14%.
The transaction received strong support from international institutional investors. Subscription demand significantly exceeded the issuance amount, with oversubscription exceeding 200%, and all bonds were placed with a selected group of US investors, including insurance companies, investment funds, and pension funds, in less than two hours.
The success of this transaction enhances international market confidence in the soundness of Barcelona's projects and reflects the club's ability to execute its financial and growth strategies. The high demand recorded for this issuance and the conditions obtained demonstrate investor support for the club's financial development. This support is also reflected in the decrease in the market-required spread, which fell from 240 basis points to 202 basis points compared to the previous issuance, showing a more favorable perception of risk by the market and stronger confidence in Barcelona's projects.
The proceeds from this initial issuance will be used to strengthen the club's cash position and continue advancing the execution of its strategic plan, in line with Barcelona's goals of growth and financial consolidation.
Goldman Sachs acted as the lead arranger and placement agent for this ten-year bond issuance.
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Yaabclnuy
0
A bond is a certificate issued by an institution (here Barcelona) to an investor (here - technically Goldman) in exchange for immediate cash. After Barcelona receives the cash immediately/today (as above 105 mil), they’d pay the investor - Goldman, 5,4 % of the 105 mil every year for 10 years - as in interest payments. Then on the maturity/duration of certificate, which is 10 years, Barca will return all 105 million back. Examples of other issued bonds: US treasury, Bundes Bond etc. US treasury pays I think ~3% for their bonds, Bundes Bund I think ~2,5% A bit clear?
Thank you for clarity. you're awesome
austin3451
0
A bond is a certificate issued by an institution (here Barcelona) to an investor (here - technically Goldman) in exchange for immediate cash. After Barcelona receives the cash immediately/today (as above 105 mil), they’d pay the investor - Goldman, 5,4 % of the 105 mil every year for 10 years - as in interest payments. Then on the maturity/duration of certificate, which is 10 years, Barca will return all 105 million back. Examples of other issued bonds: US treasury, Bundes Bond etc. US treasury pays I think ~3% for their bonds, Bundes Bund I think ~2,5% A bit clear?
Ooh its like Government security Bonds
yaudeouyz
1
what is this bond?
A bond is a certificate issued by an institution (here Barcelona) to an investor (here - technically Goldman) in exchange for immediate cash. After Barcelona receives the cash immediately/today (as above 105 mil), they’d pay the investor - Goldman, 5,4 % of the 105 mil every year for 10 years - as in interest payments. Then on the maturity/duration of certificate, which is 10 years, Barca will return all 105 million back. Examples of other issued bonds: US treasury, Bundes Bond etc. US treasury pays I think ~3% for their bonds, Bundes Bund I think ~2,5% A bit clear?
jecacmpsy
0
similar to a Share
austin3451
0
what is this bond?