12/06/2017, 04:45 PM CET

Deutsche Post DHL Group places two bonds in a total amount of EUR 1.5 billion

The company will primarily use the proceeds to refinance existing financial liabilities.

The Group's headquarters in Bonn/Germany.

  • Successful placement of a convertible bond and a senior bond at very attractive market conditions
  • Chief Financial Officer Melanie Kreis: "Our successful placement reflects our excellent standing in international capital markets"

Bonn - Deutsche Post DHL Group took advantage of highly favorable market conditions today and successfully placed two bonds with an aggregate principal amount of EUR 1.5 billion with national and international investors. Deutsche Post AG placed a convertible bond with a total principal amount of EUR 1.0 billion and a term of about 7.5 years. At the same time, Deutsche Post AG placed a senior bond with a 10-year term and a total principal amount of EUR 500 million. The company will primarily use the proceeds to refinance existing financial liabilities. In addition, the funds will be used to increase assets for pension obligations to employees in Great Britain.

The convertible bond, for which subscription rights have been excluded, may be converted initially into about 18 million registered shares in the company. The coupon was set at 0.05 percent annually. The issue price amounts to 100.377 percent of the principal amount. The initial conversion price was fixed at around EUR 55.69, which corresponds to a conversion premium of 40 percent as determined by the volume-weighted average price of around EUR 39.78 per Deutsche Post share in XETRA trading during today's book-building process.

In addition, a senior corporate bond with the total principal amount of EUR 500 million, a 10-year term and an annual coupon of 1.000 percent was placed.

Melanie Kreis, Chief Financial Officer at Deutsche Post DHL Group, said: "Demand for our bonds today was really strong in international capital markets. This success reflects our excellent standing among investors."

BofA Merrill Lynch acted as Sole Global Coordinator and joint bookrunner for both transactions. The joint bookrunners for the convertible bond were, besides BofA Merrill Lynch, Citigroup Global Markets Limited, Société Générale Corporate & Investment Banking and UniCredit Bank AG. For the senior bond acted Deutsche Bank, SEB and Standard Chartered Bank as additional joint bookrunners.

Christina Neuffer

Topics: Business and Financial Communication, Global Business Services, Corporate Topics

Deutsche Post DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany

Phone: +49 (0)228 182 9944
Fax: +49 (0)228 182 9880