Deutsche Post's second bond is a great success
Volume of EUR 1 billion / 10-year term / Strengthens financial structureBonn, 10/21/2003, 11:30 AM CEST
The second Euro benchmark bond of Deutsche Post World Net has been given a very positive response by the international financial markets. The order books closed today already, just a day after the bond was issued. The bond has a volume of EUR 1 billion and runs for a term of 10 years.
As well as the great demand in Germany, there was also particular interest in other European countries. Within 24 hours, the bond had already been oversubscribed. Orders of a total value of well over EUR 2 billion were submitted.
The bond bears a nominal rate of interest of 4 7/8 percent and a yield mark-up of 49 basis points above the mid-swap. Thus, the bond is at the lower end of the interest rate aimed at by Deutsche Post.
Dr Edgar Ernst, Board Member Finance, was very pleased with this success: "From the point of view of the capital market, the high volume subscribed and the low interest spread reflect the unchanged high credit standing of Deutsche Post. That is the result of our solid financial structure and of the Group's secure position in the international market. Deutsche Post will continue to pursue this successful, conservative financial policy in the future."
The bond will be used for the long-term refinancing of liabilities and does not increase the Group's net debt. Deutsche Post World Net can thus reduce its credit costs and secure current low interest rates for the long term.