Deutsche Post bond secures low long-term interest rates09/18/2002, 01:00 AM CEST
The terms of Deutsche Post World Net's first benchmark euro bond guarantee the Group long-term low interest rates. The total volume of the bond, which is being issued in two tranches with terms of five and ten years respectively, is €1.5 billion.
In total, orders worth €6.5 billion were submitted.
The five-year bond has a volume of €750 million and a nominal coupon of 4 1/4 percent, and is being issued at a spread of 37.5 basis points over the mid-swap rate.
The ten-year bond has a volume of €750 million and a nominal coupon of 5 1/8 percent, and is being issued at a spread of 60 basis points over the mid-swap rate.
The bond is being issued at the lower end of Deutsche Post's target interest rate spread, making it an excellent instrument for refinancing the Group at favorable terms. The bond will be used to convert current liabilities into long-term debt and does not increase the Group's gearing. All in all, the bond represents an additional element of Deutsche Post's conservative financial policy and will further improve the Group's financial strength.
The Post bond will be admitted to Frankfurt Stock Exchange on October 4; the first day of trading will be October 8.