Smurfit Kappa Sells €750M Worth Of Bonds To Reduce Borrowing Costs
The Smurfit Kappa Group (SKG) has sold approximately €750 million worth of bonds via a private transaction with investors.
According to the Irish Independent, the move comes as the company looks to reduce its borrowing costs.
SKG will use the proceeds from the bonds issued for €250 million in notes which is due in 2020, and another and €500 million that expire in 2021.
The firm said that the new notes are being offered in a private placement and there will be no public offering.
The €500 million in notes will be sold by Smurfit Kappa Treasury, a subsidiary of SKG.
It is believed it SKG intended to sell only €500 million notes, but there was significant investor demand for the issue.
The group intends to make use of its strong financial position as global political and trade tensions grow, resulting in fears of a growing global recession.
The move comes as the amount of negative-yielding bonds in the eurozone increased further in August.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.