News Column

Clarification regarding treasury applications

July 4, 2014



ENP Newswire - 04 July 2014

Release date- 30062014 - PT issued an announcement clarifying that it has subscribed Euro 897 million euros in commercial paper of Rioforte and that the applications will mature on 15 and July 17, 2014 (847 and 50 million euros, respectively).

In a statement submitted to Comissao do Mercado de Valores Mobiliarios, PT provides clarifications concerning reports in the media about the treasury applications in commercial paper of Rio Forte Investments S.A. (Rioforte), a company of Grupo Espirito Santo (GES).

Through the then subsidiaries PT International Finance BV and PT Portugal SGPS SA, the operator subscribed a total 897 million euros in commercial paper of Rioforte, with an average annual remuneration of 3.6%. All treasury applications in commercial paper of Rioforte currently in the portfolio will mature on 15 and 17 July, 2014 (847 and 50 million euros, respectively).

In the same statement, PT states that 'since 28 April 2014, no applications and / or renewals of such investments were made' and that 'as at this date, PT International Finance BV and Portugal Telecom, SGPS, S.A. maintain bank deposits with BES totaling Euro 22 million and Portugal Telecom, SGPS, S.A. maintains bank deposits of Euro 106 million.'

PT further clarifies that the 'subscription of commercial paper of Rioforte is based on the 14-year long adequate experience in treasury applications of Banco Espirito Santo (BES) and GES entities, in the context of the strategic partnership signed in April 2000 between both parties.' The partnership contemplated the cross shareholding between both entities as well as the designation of PT as a preferred supplier of telecommunications to BES Group and the designation of BES as preferred provider of financial services to PT.


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Source: ENP Newswire


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