METRO GROUP issues €-Benchmark-Bond with a seven-year maturity

21 October 2014

METRO GROUP issued successfully a benchmark bond in the corporate Eurobond market today and thus optimizes its financing maturity profile. The volume of the bond amounts to €500m and matures in seven years. The coupon is 1.375% and thus the lowest coupon ever for a BBB- rating with a seven-year maturity. The issue was priced at a spread of seven years mid-swaps +75bp.

The proceeds will be used to secure the refinancing of the bond due in March 2015. The new bond was distributed amongst more than 140 institutional investors in 24 countries. 68% of the bond was issued outside Germany.

"The high quality order book was nearly 2-times oversubscribed. This reflects the positive standing of METRO GROUP in the capital markets. With the successful bond issuance we optimised our maturity profile and increased our entrepreneurial flexibility", said Mark Frese, CFO of METRO GROUP.

Commerzbank, Deutsche Bank, UniCredit und RBS have been mandated to act as joint bookrunners for the bond. The issuance of the bond is conducted under the existing €6bn Debt Issuance Program and will be listed at the stock exchange in Luxembourg. METRO GROUP is rated Baa3 stable outlook (Moody's) and BBB- stable outlook (Standard & Poors).