GENEVA, Switzerland, 20 March 2017 – Temenos Group AG (SIX: TEMN), the software specialist for banking and finance, today announces the issuance of a new CHF150m bond.
Temenos issued a seven year senior unsecured bond with a coupon of 1.75% that matures in April 2024. This latest bond builds on the success of the previous three bonds issued by Temenos in March 2013, March 2014 and May 2015.
Taking advantage of positive market conditions, the bond attracted strong demand across a broad spectrum of investors, including private banks, retail and institutional investors.
The proceeds from the bond will be used for the 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 and COO of Temenos, said:
“We saw significant appetite for our most recent bond across a broad range of investors. Favourable market conditions enabled us to raise new financing on very attractive terms, whilst further extending our maturity profile and strengthening our balance sheet. Demand was driven by our outstanding operational performance, in particular the strength of our cash flows which are consistently above 100% of EBITDA, and the continued reduction in DSOs which reduced by 27 days in 2016 and which we expect to reduce by a further 5-10 days per annum in the medium term. We are in a strong position to deliver our strategic objectives and to capitalise on the market growth.”