Tap - comment

Tap have performed their planned capital increase by the Portuguese state. The transaction amounts to a full write-off of the existing capital and the issue of new shares worth €980m, fully subscribed by the Directorate General of the Treasury and Finance. Cash for the shares however will only flow in three almost equal tranches this December, Dec 23 and Dec 24. Our model deems this sufficient, but makes it less obvious that Tap would redeem the 24s in H123 and somewhat more reliant on market conditions.