Deutsche Post DHL issues three bonds worth a total of EUR 2.0 billion
- Successful issuance of a convertible bond and two conventional bonds at attractive conditions
- Transaction expected to improve operating cash flow and have a positive impact on earnings
- CFO Larry Rosen: "We are very pleased with the results"
Deutsche Post DHL took advantage today of the favorable market conditions for companies with high credit quality and successfully placed three bonds with a total volume of EUR 2.0 billion to national and international investors. The company placed a convertible bond with a volume of EUR 1.0 billion and a seven-year term. At the same time, it issued two conventional bonds with terms of 8 years and 12 years in the amount of EUR 300 million and EUR 700 million, respectively. The Group plans to use the capital raised to almost double the plan assets covering pension obligations to German employees. The company expects this step to improve its operating cash flow in future years and to also have a small positive impact on the Group's financial result and its net income.
The convertible bond, for which subscription rights have been excluded, may be converted into initially 48.2 million registered shares of the company. The coupon was set at 0.6 percent. The initial conversion price was fixed at EUR 20.74, which corresponds to a conversion premium of 30 percent on the basis of the volume-weighted average price of EUR 15.96 for the Deutsche Post share in XETRA trading during today's book-building process. The Group intends to list the convertible bond for trading on the Open Market segment of the Frankfurt Stock Exchange. Deutsche Bank AG acted as the sole global coordinator and joint bookrunner for the offering of the convertible bond. BNP Paribas, Citi and Morgan Stanley acted as additional joint bookrunners.
Very pleased with the results of the placement
In addition, a conventional corporate bond in the amount of EUR 300 million, an eight-year term and a spread over the corresponding mid-swaps rate of 60 basispoint was placed. The second corporate bond with a term of 12 years has a volume of EUR 700 million and a spread of 100 basispoints to the mid-swaps rate. The Joint Bookrunners of both issuances were besides Deutsche Bank as Global Coordinator Commerzbank, HSBC, ING, JPMorgan and UniCredit.
"We are very pleased with the results of today's placement," said Deutsche Post DHL CFO Larry Rosen. "We view the strong demand and the attractive terms as a renewed indication of the high standing enjoyed by Deutsche Post DHL as an issuer on international capital markets and at the same time as recognition for the sustained successful business performance of the Group."