Sports car manufacturer
optimizes long-term liquidity position
Stuttgart - Dr. Ing.
h.c. F. Porsche AG, Stuttgart, has successfully placed two bonds
in the market via its finance subsidiary "Porsche International
Financing plc" based in Dublin/Ireland. Porsche AG is to act as
guarantor for each of the two bonds. Part of the issue involves
a Eurobond for EUR 2 billion, where two separate tranches of EUR
1 billion have maturities of five and ten years respectively.
maturity carries an interest coupon of 3.5 percent p.a.,
the ten-year maturity an interest coupon of 3.875 percent.
A hybrid bond denominated in US dollars of USD 1 billion
with perpetual maturity was also issued. The bond bears
interest of 7.2 percent. Under IFRS international accounting
standards, hybrid bonds are recognized in equity, and will
therefore strengthen the Porsche Group's equity base. Porsche
can also use the bond as a currency-hedging instrument.
Both bonds have generated extraordinarily
high levels of demand from investors and each was many-times oversubscribed.
This is all the more remarkable as Porsche currently has no rating, meaning
that the high demand for the bonds reflects the sports car manufacturer's
excellent reputation in the international finance markets.
Holger P. Härter, Chief Financial
Officer of Porsche AG remarked: "In light of the overwhelmingly high demand
shown by investors and the remaining low interest rates in the euro zone,
we took the opportunity to issue high volumes. The new bonds not only optimize
our structural liquidity, they also guarantee - totally in line with our
conservative financing strategy - a consistent, comfortable liquidity cushion
for the Company."