Carraro Finance withdraws bond offer, cites international instability

By Mary-Katherine Stinson

Lexington, Ky., Feb. 24 – Carraro Finance SA announced it has withdrawn its bond offering citing sudden and unexpected developments in the international geopolitical situation as well as probable uncertainty in the coming months, according to a notice on Thursday.

As previously reported, Carraro had announced an offering of up to €120 million of non-convertible bonds due 2028 bearing fixed interest at 3¾%. The offering was scheduled to open Feb. 23 and expire March 1 with a provision to close early should the €120 million maximum amount be met prior to the expiration time.

The notice states there will be no significant impact on the Carraro Group because of the withdrawal as the company is able to maintain current cash reserves.

The company also stated it does not plan for an early redemption of any of its existing bonds but should market and geopolitical conditions improve it will consider another offering at that time.

Carraro makes eco-compatible power transmission systems primarily for agricultural machinery. The Campodarsego, Padua, Italy-based company has production plants in India, Argentina, China, South Africa and Brazil.

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