Deutsche Post DHL issues two corporate bonds with a total amount of EUR 1 billion
- Two conventional bonds successfully issued at attractive conditions
- Capital will be used to refinance bond maturing in January 2014
- CFO Larry Rosen: “We are very pleased with the results”
Deutsche Post DHL, the world's leading mail and logistics group, took advantage today of the favorable capital market conditions for companies with strong credit ratings to successfully place two conventional bonds in the total amount of EUR 1 billion with national and international investors. The capital raised will be used to refinance a ten-year bond that will mature in January 2014. The first issue in the amount of EUR 500 million has a term of five years, an annual coupon of 1.5 percent and a spread over the corresponding mid-swaps rate of 43 basis points. In addition, the company placed a EUR 500 million bond with a ten year term, a 2.75 percent p.a. coupon and a spread of 75 basis points to the mid-swaps rate.
Larry Rosen, CFO at Deutsche Post DHL, was pleased with the result of today's placement, saying: The strong demand and the attractive terms underscore the high standing that Deutsche Post DHL enjoys on the international capital markets.
Today's transactions by the Group were implemented under its Debt Issuance Program established in 2012. The program allows the company to issue bonds in customized tranches up to the agreed total amount of EUR 5 billion. The joint bookrunners for the two issues were Bank of America Merrill Lynch, also acting as Global Coordinator, Deutsche Bank, Morgan Stanley, ING, HSBC, and the Royal Bank of Scotland.