Uber seeking 4.5 billion euros from debut euro bond sale
It’s selling fixed-rate securities with maturities ranging from three years to 20 years
Uber Technologies aims to raise 4.5 billion euros ($5.2 billion) through its first five-part euro bond, marking a shift in how American companies fund themselves in Europe. The ride-sharing app is offering fixed-rate securities with durations spanning from three to 20 years, according to a source familiar with the matter. Investor interest exceeded expectations, with bids surpassing 21 billion euros, which pushed prices down from the initial estimate to 45 basis points for the shortest bond and 170 basis points for the longest.
This move follows a trend of American firms issuing euro bonds this year, as reported by Bloomberg data. Uber is also advancing in Europe by acquiring Delivery Hero, a deal approved earlier this month. Fitch Ratings applauded the acquisition, citing "greater scale and geographic diversification" in its A- rating, which is higher than the BBB+ score from Moody’s and S&P Global.
US non-financial companies issuing bonds in euros are expected to exceed the previous all-time high of $150 billion, as reported by Bloomberg. Major banks managing the bond sale are Goldman Sachs Group, BNP Paribas, Bank of America, Deutsche Bank, and Morgan Stanley.
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