Uber seeks to raise over $5B in inaugural EUR-denominated bond: Report

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Uber Technologies Inc. is looking to raise €4.5 billion ($5.2 billion) through its inaugural EUR-denominated bond offering, split into five tranches, in the latest move by a US company to diversify its funding sources in Europe, Bloomberg reported, citing people in the know.

The fixed-rate bonds will have maturities ranging from three to 20 years.

The offering attracted strong investor demand, as investor bids of more than €21 billion combined helped prices tighten from initial guidance to 45 basis points over mid-swaps for the shortest tranche to 170 basis points over for the longest, according to the sources.

Uber's move demonstrated its success in tapping strong European market appetite to raise low-cost funding, helping finance its strategic expansion, including its planned acquisition of Delivery Hero, with the German company's board approaved earlier this month.

Data indicated that EUR-denominated debt issuances by US companies are on track to surpass the previous annual record of €128.6 billion ($150 billion).