2023-11-09 18:45:17
November 9, 2023 Today at 7:24 p.m.
The subscription to the bond dedicated to individuals of the pharmaceutical group UCB had to be closed earlier than expected. A single day was enough to raise the targeted 300 million euros.
Individual investors flocked to the latest bond offered to them on the Belgian market. This Thursday, the pharmaceutical group UCB
announces that it has closed early the subscription to the security whose issue it had announced on Tuesday, while the high range of 300 million euros was reached in a single day.
As a reminder, this bond offered a gross rate of 5.2%. Once the bank commission and the withholding tax of 30% were deducted, this translated into a net yield of 3.29%, higher than the previous securities issues carried out since the beginning of the year. UCB thus aimed to raise between 100 and 300 million euros, giving themselves until November 13 to reach this amount.
The deadline should therefore not have been expected, given the popularity of the product, which also offered a higher yield than Belgian government bonds of a similar maturity. While rates are now falling on the bond market, savers seem to be rushing into these securities to lock in a high rate for an extended period.
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“The success of this transaction highlights UCB’s access to diversified sources of financing and allows us to extend the maturity profile of our debt.”
Sandrine Dufour
Financial Director of UCB
Wanted for her obligations, abandoned for her actions
“We are very happy with the trust that individual investors have shown in us by responding positively to this issue of securities. The success of this transaction underlines UCB’s access to diversified sources of financing and allows us to extend the maturity profile of our debt”, indicates Sandrine Dufour, the group’s financial director. The funds will be intended for general needs of the company, including partial refinancing of bank loans.
On the other hand, if the UCB bond quickly found its audience, this is far from the case for the company’s shares, member of the Bel 20 on the Brussels Stock Exchange. Since the start of the year, they have lost almost 10% of their value, and are trading at their lowest level since October 2019.
However, the group received two weeks ago a highly anticipated marketing authorization in the United States for its drug bimekizumab (or Bimzelx) once morest psoriasis. But unexpected warnings of side effects in the instructions for use have undermined the opinion of some analysts, while the healthcare sector as a whole is experiencing a difficult year on the markets d’actionswith a few rare exceptions.
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