FC Porto SAD announces 40 million euro bond issuance

FC Porto SAD has announced the issuance of up to eight million bonds with a total value of 40 million euros, intended to cover a four-year period. The club communicated the plan to the Portuguese Securities Market Commission (CMVM), noting that the total amount could be increased by November 10.

The bond features an innovative remuneration model where the base annual interest rate of 5.25% can be increased based on the team's sporting performance. Specifically, winning the national championship would increase the interest by 0.1%, while qualifying for the Champions League would add 0.15%.

The operation includes both a public offering and an exchange offer. The exchange allows holders of the 2023-2026 bonds, which are due for reimbursement on December 7, to swap their titles for the new 2026-2030 series. The primary goal of the issuance is to raise funds to reimburse existing debt and extend the maturity of a portion of the club's debt from 2026 to 2030. Subscription is open from November 2 to November 13, with a minimum investment of 2,500 euros.