PORR raises €150m to support expansion across European construction markets

Austrian construction group PORR has raised €150m through a new convertible hybrid bond, providing additional capital to support expansion across its seven core European markets. The company plans to use the proceeds to increase financial flexibility, including financing organic growth, potential acquisitions and general corporate purposes.

The instrument will be recognised as equity under IFRS, strengthening PORR’s capital base rather than adding the full amount to conventional financial debt. The financing comes as the group continues to invest in its operations and pursue growth opportunities across construction and infrastructure markets.

The €150m issue carries an annual interest rate of 2.75% until 30 September 2031. After that date, the rate will be reset using the applicable five-year euro mid-swap rate plus 900 basis points. PORR also has the option under the terms of the instrument to defer interest payments.

Investors will initially be able to convert the securities into PORR shares at €42.90 per share, representing a 30% premium to the €33 reference share price established through the accompanying placement. At the initial conversion terms, approximately 3.5 million shares would underlie the securities, equivalent to around 8.9% of PORR’s issued share capital.

The capital raising follows continued growth at PORR during the first half of 2026. At the end of June, the group reported equity of €946m and net debt of €460.6m. First-half revenue reached €2.93bn, while EBIT increased by 15.6% year-on-year and pre-tax profit rose by 26.8% to €49.2m. Higher expenditure on acquisitions and fixed assets contributed to the increase in net debt during the period.

The securities were placed privately with institutional investors outside the United States, with settlement expected around 30 September 2026. PORR intends to have them admitted to trading on the Vienna MTF of the Vienna Stock Exchange. A separate placement of existing PORR shares was conducted alongside the transaction to allow some investors to hedge their exposure, but PORR will receive no proceeds from those share sales.

BofA Securities, Raiffeisen Bank International in cooperation with ODDO BHF, and UniCredit acted as joint global coordinators and bookrunners, while Lilja & Co. advised PORR. With the new capital available for both investment in existing operations and potential acquisitions, the transaction increases PORR’s financial capacity to pursue further growth across its European construction and infrastructure businesses.