River Plate happened with Successful first test in the capital market. With a demand that exceeded the offer by more than 30%the club obtained financing for about almost $20,000 million (captured $19,791,576,552 to be exact).
He Financial Trust adjusted by UVA for a 30-month term received thousands of orders, and had excellent reception among retail investors. By having a demand higher than what was awarded, ended up prorating the orders to 88.1%, and their price was VN 100 (at par).
“From the first moment we started working with River on this issue, we were convinced that it was going to be an innovative and very attractive product for the local capital market,” assured Augusto Posleman, Director of PPI, the only ALYC in the market that was an underwriter.
“The rate of 9% plus inflation, its rating and the assets transferred as collateral to the trust made this issue a more than interesting option for the market, which was reflected in the excess demand it had,” he added.
“We also take this opportunity to thank River Plate for the trust placed in PPI, and we congratulate it for its excellent first placement in the capital market. We hope it is the first of many more!” Posleman remarked.
Let us remember that your rating is A+sf, in which FIX SCR highlighted the solid economic and financial situation of Club Atlético River Plate; and Regarding the instrument, the good debt service coverage ratios thanks to the flows from its main assets.
River Plate in the capital market: what it will do with the funds
The funds raised through the issue will be used to continue the 2024-2025 investment plan, which includes improvements in key infrastructure for the club. Among them, the following stand out: the new sports center, a new building for the River Institute and a new facility for training football. For the first time, River will have its own property dedicated exclusively to youth football.
“The tender was successful. This placement reflects the confidence of investors in this innovative investment instrument, the commitment to the growth project of one of the most important sports institutions in the country and the attractiveness of this issue as an opportunity to beat inflation and obtain more returns. than the traditional UVA fixed terms”they commented from Cocos Capital, which registered the participation of about 3,000 investors through its App.
The trust represented an opportunity for those investors seeking to save and increase their purchasing power by offering a 9% annual rate on capital adjusted by the UVA index (inflation), with quarterly payment of capital and interest services.
River Plate has more than 350,000 members and around 20 million fans in Argentina and the world.
Source: Ambito
