Prosus raises more than $2 billion through oversubscribed debt offering

The proceeds of the offerings will go to future merger and acquisitions activity.

Prosus has raised more than $2 billion through an oversubscribed debt offering for acquisitions amid the current “favourable market backdrop”.

The company said in a statement that the current market backdrop enabled Prosus to diversify its funding sources by establishing a position in the euro bond market, while at the same time extending the duration of the company’s financing curve to 30 years in the US dollar market. 

Prosus said it had raised the money through debt, comprising its longest-dated dollar offering to date on Monday and debut euro notes on Tuesday. Its issuances consist of $1 billion 4.027 percent notes due in 2050, $500 million 1.593 percent notes due in 2028, and $500 million 2.031 percent notes due in 2032.

The purpose of the offerings is to raise proceeds for general corporate purposes, including potential future merger and acquisitions activity, as well as to further augment the company’s liquidity position. 

“The offerings attracted strong investor demand, with US dollar notes more than seven times subscribed and the euro debut notes more than 11 times subscribed on the eight-year notes and 12 times subscribed on the 12-year notes, allowing pricing of the bonds at rates that reduce the company's average funding cost, while at the same time extending the blended maturity profile of its outstanding notes to almost 12 years,” Prosus said.