(Berlin, 6th October 2009) Deutsche Bahn successfully issued a mid-term euro benchmark bond today via its financing subsidiary, Deutsche Bahn Finance B.V., Amsterdam/the Netherlands. The eight-year bond carries a coupon of 3.625 percent and has a total volume of € 500 million. The issuing price was 99.468 percent resulting in a yield of 3.703 percent.
The proceeds of the new issue will be used by Deutsche Bahn to refinance maturing debt and to enhance the firm’s financial flexibility.
In an overall favorable market environment, demand noted for the bond was once again – as for the two most recent issues in March and September 2009 – significantly higher than the volume offered. The bond was fourfold oversubscribed as total demand amounted to about € 2.1 billion. The issuing consortium was co-headed by Bank of America-Merrill Lynch, Citigroup, DZ Bank and Landesbank Hessen-Thüringen.
Deutsche Bahn’s decision to issue a mid-term bond helps to further diversify the profile of its investors. Furthermore, the new issue is also a good fit in the existing maturity structure of the company’s financial obligations. The bond may be bought in denominations of € 1000 - thereby making it more attractive for private investors to purchase the bond via the stock exchange.