Sappi pulps HY paper issue as pricing widens in weak market

Not Sappi but paper rolls recycling from Adobe 15May20 575x375
By Jon Hay, Silas Brown
15 May 2020

Sappi, the South African pulp and paper company, decided just before lunchtime on Friday to cancel a €250m bond issue, judging the price it would have had to pay too high. The failure of this deal contrasts with the vigorous issuance by much riskier companies in the US market.

“It was unfortunate we launched the deal yesterday morning,” said Jörg Pässler, group treasurer at Sappi in Brussels. “It wasn’t a good day to be in the market for a bond deal. It was not something anybody could have foreseen. The general market and equities went deep into ...

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