Tuesday, October 27

Knorr-Bremse Boosts Flexibility with Debt Issuance Program


Source: Knorr-Bremse announcement

Munich – Knorr-Bremse AG, the global market leader for braking systems and a leading supplier of other rail and commercial vehicle systems, is launching a new €3 billion Debt Issuance Program to boost the company’s financial flexibility. The program is listed on the Regulated Market of the Luxembourg Stock Exchange, with Deutsche Bank running the book.

With this program, Knorr-Bremse is lining up the opportunity to make flexible use of the bond market as an additional source of financing. In 2016 and 2018, the company successfully issued corporate bonds with a volume of EUR 1,250 million.

Related post:
Knorr-Bremse Reports Strong 1st-Half Performance

Knorr-Bremse AG CFO Frank Markus Weber said, “Through the debt issuance program we are giving ourselves the extra latitude in case we need to respond fast and appropriately to the COVID-19 pandemic. At the same time, we are proactively boosting the company’s flexibility, so that we can also make use of growth opportunities.”

About the debt issuance program:

Issuer:  Knorr-Bremse AG
Issuer ratings:  A2/Outlook negative (Moody’s), A/Outlook stable (S&P)
Volume: EUR 3 billion
Listing: Regulated Market of the Luxembourg Stock Exchange
Denomination: EUR 1,000
Applicable law: German law
Bookrunners: Deutsche Bank

Knorr-Bremse  is the global market leader for braking systems and a leading supplier of other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. About 29,000 employees at more than 100 sites in more than 30 countries use their competence and motivation to satisfy customers worldwide with products and services. In 2019, Knorr-Bremse’s two divisions together generated revenues of €6.9 billion (IFRS). For more than 115 years the company has been the industry innovator, driving innovation in mobility and transportation technologies with an edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization and mobility.

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