The engineering and services group Bilfinger has placed its first corporate bond in the amount of €500m. The bond, with a term of seven years until 2019, has a coupon of 2.375% at an issue price of 99.892%. The bond will be listed on the regulated market of the Luxembourg Stock Exchange. Standard & Poor’s recently gave the company a rating of BBB+ and a stable outlook.
"We are very pleased with the successful issue of our first bond and the very good response from investors," said Joachim MÃ¼ller (pictured), chief financial officer of Bilfinger SE. "Following the positive company rating we received recently, this represents a further significant component in the implementation of our growth strategy."
With a final order book of over €5bn, the transaction was more than 10 times oversubscribed. The company said the bond was in demand among investors in German-speaking countries as well as among international institutional investors primarily from the United Kingdom, Scandinavia and the Benelux countries.