Temenos Issues CHF175m Bond
GENEVA, Switzerland, 29 May 2015 – Temenos AG (SIX: TEMN), the market leading provider of mission-critical software to financial institutions globally, today announces the issue of a CHF175m bond.
Taking advantage of favorable market conditions, Temenos issued a senior unsecured bond with a coupon of 2% that matures in June 2022. This bond builds on the success of the previous two bonds issued by Temenos in March 2013 and March 2014.
The bond was well received, attracting strong demand across a broad spectrum of investors, including private banks, retail and institutional investors. The market appetite demonstrates the conviction in Temenos’ performance, both financial and operating.
The proceeds from the bond will be used for repayment of debt and general corporate purposes. Credit Suisse and BZ Bank executed the transaction on behalf of Temenos. The bond will be listed on the SIX Swiss Exchange.
Max Chuard, CFO of Temenos, said:
“I am very pleased by the strong market reception of our most recent bond offering, with appetite from a broad range of investors allowing us to raise new financing on such attractive terms. In particular this has been driven by the strength of our cashflows which remain at over 100% of EBITDA, and the ongoing reduction of DSOs which have been decreasing by around 15 days year-on-year. This latest debt raising further strengthens and diversifies our balance sheet, particularly given the 7 year tenure which provides visibility over a longer term. It also enables us to continue delivering on our strategic objectives, and allows us the flexibility to be responsive to opportunities as they arise.”
Temenos Group AG (SIX: TEMN), headquartered in Geneva, is a market leading software provider, partnering with banks and other financial institutions to transform their businesses and stay ahead of a changing marketplace. Over 2,000 firms across the globe, including 38 of the top 50 banks, rely on Temenos to process the daily transactions of more than 500 million banking customers as well as over USD 5 trillion in assets. Temenos customers are proven to be more profitable than their peers: in the period 2008-2012, they enjoyed on average a 32% higher return on assets, a 42% higher return on equity and an 8.1 percentage point lower cost/income ratio than banks running legacy applications.
Investor & Media Contacts
Head of Investor Relations, Temenos+44 207 423 3945 [email protected]
Conor McClafferty+44 7920 087 914 [email protected]