(Berlin, December 07, 2010) Deutsche Bahn increased today a nine-and-a-half year CHF 400 million (€ 299 million) benchmark bond issued in November 2010 via its financing subsidiary, Deutsche Bahn Finance B.V., Amsterdam/the Netherlands by CHF 350 million (€ 268 million).
The bond has a coupon of 1.75 % and the issuing price was 98.135 % resulting in a yield of 1.969 %. The proceeds of the bond increase will be used by Deutsche Bahn to improve its financial flexibility.
In a volatile market environment, the demand for the bond was once again higher than the volume offered. The same is true for all of Deutsche Bahn’s five bond issues in 2010. The longer maturity found the interest of especially Swiss institutional investors. The bond is listed on the Swiss Stock Exchange SIX with a denomination of CHF 5,000. An interest/currency swap with the same time to maturity was concluded to avoid currency exchange rate risks.
The issuing consortium was co-headed by Credit Suisse and UBS.