EDP issues 750 mln euro five-year bond
LISBON, Sept 14
LISBON, Sept 14 (Reuters) - EDP, Portugal's largest company and utility, issued a 750 million euro ($986 million) five-year bond on Friday to be the first Portuguese company to tap international debt markets since early 2011, before the country's EU/IMF bailout.
The 5.75 percent coupon was below the 5.875 percent on EDP's previous deal in January 2011, reflecting an improvement in government yields which are now at pre-bailout levels, as well as the backing of EDP's new shareholder - Chinese state-run firm China Three Gorges.
"This placement is meant to finance the company's needs linked to its normal activities, and allow to extend its debt maturities and financial flexibility," EDP said.
As part of the bailout terms, the government sold a 21 percent stake in EDP to the Chinese group at the end of last year, also getting a pledge of further Chinese investment in Portugal's embattled economy.
EDP shares jumped 3.9 percent on Friday to almost 2.2970 euros, outperforming a 1.9 percent rise in the broader market in Lisbon. ($1 = 0.7606 euros) (Reporting By Sergio Gonvalves; Writing by Andrei Khalip; Editing by Dan Lalor) (email@example.com; 351 213-509-209; Reuters Messaging: firstname.lastname@example.org)
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