03/23/2016, 04:00 PM CET

Deutsche Post DHL Group issues two bonds worth a total of EUR 1.25 billion

The transaction is expected to improve operating cash flow and have a positive impact on earnings.

 

The Group's headquarters in Bonn/Germany.

  • Successful issuance of two senior bonds at attractive market conditions
  • Transaction expected to improve operating cash flow and have a positive impact on earnings
  • CFO Larry Rosen: "Very positive response underscores our solid reputation on international capital markets"

Bonn - Deutsche Post DHL Group, the world's leading mail and logistics group, took advantage today of the favorable market conditions and successfully issued two senior bonds with a total nominal volume of EUR 1.25 billion to national and international investors. The Group plans to use at least EUR 1.0 billion of the capital raised to significantly increase the plan assets covering pension obligations to German employees. The company expects this step will improve its operating cash flow in future years and have a small positive impact on the Group financial result and its net income.

The first issue in the amount of EUR 750 million has a term of 5 years, an annual coupon of 0.375 percent and a spread over the corresponding mid-swaps rate of 45 basis points. In addition, the company placed a EUR 500 million bond with a ten year term, a 1.250 percent p.a. coupon and a spread of 70 basis points to the mid-swaps rate.

The transactions were executed by an international consortium of selected commercial banks of Deutsche Post DHL Group.

CFO Larry Rosen said: "The very positive response to today's placement has again underscored our solid reputation on international capital markets. Deutsche Post DHL Group has developed strongly in the past years thanks to the consistent execution of Strategy 2015. With our Strategy 2020 we will build on this success and continue to deliver value for our investors."