12/06/2017, 07:54 AM CET

Deutsche Post DHL Group announces issuance of bonds

Deutsche Post DHL Group will take advantage of today's attractive capital market conditions and raise up to EUR 1.5 billion.  

The Group's headquarters in Bonn/Germany.

  • Attraction of up to EUR 1.5 billion via a convertible bond and a senior bond
  • Chief Financial Officer Melanie Kreis: "We are taking advantage of very attractive conditions in the capital market once again"

Bonn - Deutsche Post DHL Group will take advantage of today's attractive capital market conditions and raise up to EUR 1.5 billion. The proceeds will primarily be used to refinance existing financial liabilities. In addition, the funds will be used to increase assets for pension obligations to employees in Great Britain. The Group previously took advantage of favorable capital market conditions to issue bonds in 2012, 2013 and 2016.

"We are very satisfied with the outcome of our previous issuances of bonds. With today's transaction, we plan to take advantage of the very attractive conditions in the capital market once again," said Melanie Kreis, Chief Financial Officer at Deutsche Post DHL Group. The bonds are expected to be placed today. Both the volume of the individual instruments and the exact terms will be based on market conditions.

The company intends to issue a convertible bond with an aggregate principal amount of up to EUR 1 billion. The convertible bond will be offered only to institutional investors outside the United States by way of an accelerated bookbuilding process. It will have a maturity of about 7.5 years and have an annual coupon of 0.05%. It will be issued at 100.377% - 103.000% of the principal amount and will be redeemed at 100% of the principal amount if it is not converted. The initial conversion price will be set at a conversion premium of 40% - 45% above the volume weighted average price of Deutsche Post AG's shares on XETRA during the bookbuilding. The convertible bond is callable by Deutsche Post AG after five years if the XETRA price of Deutsche Post AG's shares (over a certain period) exceeds 130% of the then applicable conversion price. The Group is using an authorization from the Annual General Meeting in 2017 to issue the convertible bond. Subscription rights are excluded with respect to the convertible bond. In addition to the convertible bond, a senior bond with an expected aggregate principal amount of around EUR 500 million is planned. BofA Merrill Lynch will act as global coordinator and joint bookrunner on both the convertible bond and the senior bond along with a group of international banks.

Fitch Ratings confirmed the Group’s credit quality rating at "BBB+" with a stable outlook at the end of September 2017. Shortly before this rating was issued, Moody’s Investors Service classified the company’s credit quality rating at "A3" with a stable outlook.

Christina Neuffer

Topics: Business and Financial Communication, Global Business Services

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

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