Cox Asset México has launched a hybrid debt issuance of 688 million euros, aimed at institutional investors. The operation marks a milestone in the bond market for the Spanish company.
Cox Asset México, a subsidiary of Cox Infrastructure Group, has issued hybrid debt totalling 688 million euros (equivalent to 800 million dollars) aimed at international institutional investors, according to a statement published by the company to the National Securities Market Commission (CNMV).
The securities have been launched in the 144A/Reg S format, considered one of the most rigorous globally. This issuance concludes a first phase of transformation and financial strengthening that began with the acquisition of Iberdrola México in April, and represents the first hybrid capital placement in dollars made by a non-financial Spanish company, Efe reports.
In the operation, Citi, Goldman Sachs and Scotiabank acted as global coordinators, while Barclays and Deutsche Bank were placement agents. The issuance has been met with great interest, recording a demand exceeding 2.5 billion dollars, which equates to a oversubscription of more than three times, with the participation of approximately 125 institutional investors from various regions.
The issued hybrid capital, which is perpetual and subordinated, will accrue an initial annual coupon of 8.75% and offers the first redemption option starting from 17 September 2031. This is the second issuance in less than five months that Cox has carried out in the international bond market, following a placement of 2 billion dollars in May, which also attracted strong demand, close to 8 billion dollars.
The funds raised will primarily be used to repay 733 million dollars of the term loan that was used to finance the acquisition of Iberdrola México, completed in the second quarter of the year.
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