Sunday, June 24

Knorr-Bremse AG Issues Additional Corporate Bond

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  • Volume: EUR 750 million
  • Fixed coupon rate 1.125 percent p. a. over seven-year term
  • Revenue will serve to finance growth and improve capital structure
  • Listing on Luxembourg Stock Exchange’s EURO MTF market

Knorr-Bremse AG, the leading global manufacturer of braking systems and supplier
of additional sub-systems for rail and commercial vehicles, is issuing an additional
corporate bond following its 2016 bond issue, this time with a volume of EUR 750
million. The bond has a fixed coupon rate of 1.125 percent p. a. and a seven-year
term.

The subscription period began on June 7, 2018. In just under three hours, the bond was
already round about three times oversubscribed. The order book was filled by 155 investors,
reaching a total volume of more than EUR 2 billion.

Ralph Heuwing, CFO of Knorr-Bremse, says: “By issuing this corporate bond, we gain more
flexibility – we can use the additional liquid assets to take advantage of growth opportunities.
At the same time, we are optimizing our capital structure.”

The new corporate bond has received an ‘A2’ rating from Moody’s. Issued in denominations
of EUR 1,000, the bond is designed to attract both private and institutional investors. The
bond issue is underwritten by Deutsche Bank, HSBC and Bayern LB as joint bookrunners.
In 2016, Knorr-Bremse issued a corporate bond with a volume of EUR 500 million. That
bond has a fixed coupon rate of 0.50 percent p. a. and a five-year term.


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