Bekaert to issue 100 million euros in 5-year notes

Steel and wire cord manufacturer Bekaert announced on January 8 that it will issue five-year notes for a total consideration of 100 million euros in the form of a public offering in Belgium, the Netherlands and Luxembourg. The notes will be available in 1,000 euro denominations, with the subscription period running from January 10 to February 11, 2008, subject to early closing. The issue price is set at 101.80 per cent of the nominal value of each note, with a coupon of 5.30 per cent annually. Application has been made to list the notes on Euronext Brussels.

The Fortis and KBC banking groups will act jointly as financial intermediaries and lead managers for this transaction. The purpose of the issue, reports Bekaert, is to refinance the company’s existing credit lines and short term commercial paper, and to finance future growth initiatives.