Rolls-Royce doubles Bond offer to £2bn

Rolls-Royce has announced it has doubled the value of its bond offering to £2bn after experiencing “strong demand” from investors.

The Derby firm had initially planned to raise £1bn through the placing as part of a £5bn recapitalisation package aimed at strenghtening its balance sheet, which has been weakened after the crisis in the civil aviation sector this year.

A statement from the company this morning (October 15) said: “As previously announced on 1 October, we have also received support in principle from UK Export Finance for an extension of its 80% guarantee to support a potential increase of up to £1 billion to our existing £2 billion five-year term loan facility. However, given the increase in the quantum of Notes being issued, we do not currently plan to progress this potential extension to our loan facility, while still having the option to do so at a later time if required. ”

The Bond Offering is expected to close on October 21 and the proceeds will be escrowed and will be available to Rolls-Royce upon successful completion of its Rights Issue.