Fraport AG placed a corporate bond with a total volume of 1.15 billion euros and therefore one of the biggest unrated corporate bonds in Euro ever issued in the capital markets. Driven by strong investor demand, the bond issue was noticeably oversubscribed, enabling Fraport to place the bond at particularly favorable conditions for the Group. The issue was made in two tranches. The first tranche with a volume of 800 million euros has a term of seven years. The second tranche with a volume of 350 million euros was issued to increase the bond already issued in 2020 which matures in July 2024.
The annual yield for the new seven-year bond was set at 1.925 percent, with an annual coupon of 1.875 percent. The annual yield for the increased existing bond was set at 1.034 percent, while the bond’s annual coupon remains unchanged at 1.625 percent. The nominal amount of the bond is divided into denominations of 1,000 euros each.
Dr. Matthias Zieschang, Fraport AG’s executive board member for finance and controlling (CFO), said: “Despite the extremely busy corporate bond market this week – with a total of 19 transactions in the eurozone so far amounting to about 13 billion euros – we have further enhanced our liquidity position at particularly favorable conditions. We have already raised a total of roughly €1.9 billion in new funding during the first three months of 2021 – thus ensuring excellent financial flexibility for Fraport. With today’s bond issue, the amount of our liquid funds and secured credit lines will increase to more than €4 billion as per end of March 2021.”
Purchased by various European institutional investors and retail intermediaries, the Fraport bond will be listed in the regulated market of the Luxembourg Stock Exchange. A bank consortium comprising BayernLB, BNP Paribas, Commerzbank, DZ BANK and LBBW Bank acted as the joint lead-manager for the bond issue.