Deutsche Post World Net To Issue First Euro-Denominated Bond05/27/2002, 01:00 AM CEST
In early May Deutsche Post World Net received excellent initial upper investment grade ratings from international rating agencies Moody's Investor Service (Aa3), Standard & Poor's (A+) and Fitch Ratings (Aa3). Based on these ratings Deutsche Post World Net is planning its first benchmark euro-denominated bond issue in the coming weeks as part of its capital market strategy.
It will probably have an issue size of €1bn and be used exclusively to convert short-term borrowings into long-term ones. This will not increase the Group's overall debt level. Deutsche Post World Net can thus benefit in the long term from the currently low interest rates.
It has retained Credit Suisse First Boston, Deutsche Bank and Morgan Stanley as joint lead managers.
The transaction will be initiated in the next few weeks and introduced to potential investors, followed by the fixing of terms and conditions and the issue of the bond.