Published on : Saturday, September 6, 2014
In order to raise additional long-term financing for general corporate purposes and to take advantage of the currently favourable capital market conditions Deutsche Lufthansa AG issued a 1.125% EUR 500m five-year bond.
The bond, which is due 12 September 2019, had a re-offer price of 99.556% to give a spread over mid swaps of 75 basis points. Lufthansa is rated BBB- (stable outlook) by S&P and Ba1 (positive outlook) by Moody’s. The issue was three times over-subscribed and achieved the lowest coupon ever for a BBB- rated corporate.
The achieved terms of the transaction demonstrate the confidence placed in Lufthansa as a borrower. Joint Book runners were Bank of America Merrill Lynch, Commerzbank, Deutsche Bank and Société Générale. The transaction has been launched off Lufthansa’s Debt Issuance Programme. The bond will be listed on the Luxembourg Stock Exchange.