Gruppo Campari is hailing the success of its recently-launched bond issue.

The Milan-based company said yesterday (8 October) that the issue, for a notional amount of EUR350m (US$516.6m), was nine times over-subscribed .

The unrated seven-year Eurobond issue will pay a fixed annual coupon of 5.375%; the issue price is 99.431% corresponding to an effective gross yield to maturity is 5.475%. The notes are due on 14 October 2016 and will be issued in denominations of EUR50,000 and integral multiples of EUR1,000 up to EUR99,000.

Application will be made for the notes to be admitted for trading on the regulated market of the Luxembourg Stock Exchange. The subscription settlement is expected on 14 October.

"The transaction has been very successful both in Italy and the international markets," said company CEO Bob Kunze-Concewitz. "The bond issue was very well received by investors, reflecting Gruppo Campari's excellent global brand recognition and reputation in the capital markets."

The proceeds will be used for debt refinancing and general corporate purposes.

Last month, Campari reported half-year net profits boosted by lower spend on advertising and promotion, but sales were hit by destocking in key markets.