Sport Lisboa e Benfica, SAD, raised 50 million euros in the public subscription offer for the “Obligations Benfica SAD 2020-2023”, whose subscription term ended on the 10th of July.
The SAD benfiquista bond loan, led by Domingos Soares de Oliveira, registered a lot of interest with investors. On the first day of the operation, 29 June, gross demand reached 36 million euros, exceeding the initial loan amount by 35 million euros, which was 8 million euros, but was later raised on 50 July, to XNUMX million euros.
The operation ended with a gross demand of 70 million euros, that is, 1,4 times the amount on offer after the increase.
3.688 investors subscribed to “Benfica SAD 2020-2023 Bonds”. "In most cases, they are people who have invested regularly," revealed Domingos Soares de Oliveira, who participated in the results calculation session that took place this Monday.
Domingos Soares de Oliveira explained that SAD 'incarnate' increased the bond loan by 15 million because, in defining the initial amount of the transaction set at 35 million euros, a prudent policy was followed, and then found that it could create additional slack in treasury for the 2020/2021 season.
“We were cautious in the amount initially defined because we didn't know how the market was going to react. The fact that we can have an additional reinforcement of cash resources was used in a good way, the demand was 70 million. With a conservative increase policy and not damaging the amount requested too much, we decided to make this increase of 15 million. It gives us an extra break for the next sporting season, ”said SL Benfica administrator, SAD.
In addition, the manager also admitted that Benfiquista's SAD was at the “right” time to launch this bond loan.
“The economic situation we are experiencing today is not the ideal moment, but it was that moment when we felt that, due to the reaction of the market and above all by the confidence that the financial entities that were part of the banking syndicate showed, we felt that it was the right time to move forward. Certain not only because we have already entered a situation of progressive deflation, [but also] because the month of June is not yet a strong month of holidays - and when we do not like to do these obligations - and certain also because at this stage when it still exists a set of uncertainties reasonably high in relation to the next sporting season, this was the time to create additional robustness in terms of our treasury situation ”, revealed Domingos Soares de Oliveira.
The minimum subscription amount was 1.500 euros, with the vast majority of investors (63,10%) subscribing between 1.500 and 5.000 euros, while more than a fifth subscribed between 10.005 euros and 50.000 euros. There were also 128 investors who invested more than 50.000 euros and about 11% invested between 5.005 euros and 10.000 euros.
With maturity until 2023, investors will be renumbered at an annual fixed and gross interest rate of 4%.
The operation had several advisors. Legally, it had the support of Vieira de Almeida. The global organizer and coordinator was Haitong Bank, and the placement of the bond loan fell to a group of financial institutions such as ActivoBank, Banco Best, Banco Carregosa, Banco Invest, Banco Montepio, Caixa BI, Crédito Agrícola, Caixa Geral de Depósitos and also Millennium bcp.
The audit was the responsibility of PwC and the calculation of the results of the operation, admission and custody was entrusted to Euronext.
Filipa Franco, head of listing Euronext stressed that the issue of this bond loan "demonstrates the interest of national investors in investment alternatives and diversification of financial applications".
Covid-19 can take up to 25 million euros from 'Luz' coffers
Covid-19 put pressure on the results of the 'red' SAD, not only in terms of ticketing revenue, but also in terms of merchandising.
Domingos Soares de Oliveira explained that each football game held 'behind closed doors' at Estádio da Luz means a drop in ticket revenues of one million euros “roughly”.
"Therefore, the number of games we were unable to play with the public was five games at home and we have a direct impact of around five million euros," said the administrator of the SAD benfiquista.
Furthermore, considering “the other strands, namely in terms of merchandising , which had a very relevant break, we point out that the final impact in the year 2019/2020 will be between 20 and 25 million euros ”, said Domingos Soares de Oliveira.
(updated at 17:23 pm)