DLA Piper advises Austrian construction firm PORR AG on the issuance of a EUR125 million hybrid bond

DLA Piper has advised long-standing client PORR AG (PORR) on the issuance of a new EUR150 million hybrid bond. This bond, which was placed with national and international insti-tutional investors, is PORR’s third hybrid bond issue, following two others in 2014 and 2017.

The issue was significantly oversubscribed and the interest rate was fixed at 5.375% at the low-er end of the price range issued due to high demand. The new hybrid bond has an unlimited term with the issuer's option of early redemption after five years.

This transaction also included the upstream partial repurchase of the hybrid bond issued in 2017. In total, a nominal amount of around EUR25.7 million was repurchased from the hybrid bond issued in 2017.

Corporate partner Christian Temmel, who led the team advising PORR, said: “As a pioneer in capital market instruments, PORR has extensive experience in issuing hybrid bonds. The fact that this hybrid bond was oversubscribed by PORR and, compared to other hybrid instruments, has an attractive interest rate underlines PORR's capital market reputation.. DLA Piper has ad-vised PORR on a wide range of deals in the past, and we are very pleased that once again we have been able to advise our long-standing client on this succesful transaction.”

The DLA Piper team was led by Vienna-based Corporate partner Christian Temmel, who was assisted by senior associate Christian Knauder.