Increased Offer Reflects Strong Market Demand

Futebol Clube do Porto (FC Porto) has substantially increased its bond offering, signaling robust investor confidence. Initially set at €30 million, the offering has been boosted to €50 million, according to an official statement released to the Securities Market Commission (CMVM). This adjustment underscores the club’s proactive approach to capital markets and its responsiveness to investor appetite.

Details of the “FC Porto SAD 2025-2028″ Bond

The bonds, officially named “FC Porto SAD 2025-2028,” are being offered at a nominal value of €5 each. They feature a gross fixed interest rate of 5.50% per annum, with a reimbursement date slated for December 2, 2028. This fixed-rate offering provides investors with a predictable return over the bond’s lifespan, making it an attractive option in the current economic climate.

Subscription and Exchange Offers: A Dual Approach

FC Porto is employing a dual strategy, utilizing both subscription and exchange offers to maximize participation.The offering period commenced on March 17, 2025, at 8:30 am and will conclude on March 28, 2025, at 3:00 pm. During this window, investors can submit their subscription or exchange orders.

Public Offering of Subscription

The public offering of subscription aims to issue up to 10,000,000 bonds, each with a nominal value of €5, totaling a potential €50,000,000.

Public Offering of Exchange

Concurrently, the public offering of exchange targets up to 10,000,000 bonds, also at €5 each, for a total of €50,000,000. Thes bonds are intended to replace those issued on April 13, 2022 (“FC Porto SAD 2022-2025”), which carry a 5.25% gross fixed interest rate and are due for reimbursement on April 13, 2025.

Exchange Terms and Conditions

For each “FC Porto SAD 2022-2025” bond exchanged, investors will receive one “FC Porto SAD 2025-2028” bond. Additionally, an interest payment of €0.123229167 per exchanged bond, covering the period from October 13, 2024, up to (but not including) the issuance date, will be provided. This payment is subject to applicable taxes, commissions, and other charges.

Allocation and Amortization

The document specifies that subscription and exchange orders are subject to allocation criteria. If demand exceeds the available “FC Porto SAD 2025-2028” bonds, orders will be fulfilled accordingly. All “FC Porto SAD 2022-2025” bonds acquired through the exchange offer will be amortized and canceled on the issuance date.

All obligations FC Porto SAD 2022-2025 acquired by the offer Satisfying exchange orders will be amortized and cancellation on the issuance date.

Context: Previous Bond issuance

In November 2024,FC Porto SAD launched a bond loan aiming to raise up to €30 million at a fixed interest rate of 5.25%. While the subscription period extended untill November 29,the club secured €21 million in debt from 1,320 investors,falling short of its initial target. The current increased offering suggests a refined strategy to attract a broader investor base and capitalize on favorable market conditions.