Click to join an upcoming live event

Turn off Ads (click)

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Catalan Catalan Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Chinese (Traditional) Chinese (Traditional) Corsican Corsican Croatian Croatian Czech Czech Danish Danish Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Irish Irish Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Telugu Telugu Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Welsh Welsh Xhosa Xhosa Yiddish Yiddish Yoruba Yoruba Zulu Zulu
Airport news Aviation News Breaking Travel News Business Travel News etn European travel news Germany Travel News International Visitor News Responsible Tourism News Tourism News Transportation News Travel Travel Destination Travel News Travel Wire News

Fraport successfully places bond issue

Fraport successfully places bond issue
Avatar
Written by Harry Johnson

Total issue volume of 1.15 billion euros provides Fraport with further financial flexibility

  • Fraport bond will be listed in the regulated market of the Luxembourg Stock Exchange
  • The first tranche with a volume of €800 million has a term of seven years
  • The second tranche with a volume of €350 million was issued to increase the bond already issued in 2020 which matures in July 2024

Today, Fraport AG placed a corporate bond with a total volume of €1.15 billion 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 has a term of seven years. The second tranche with a volume of €350 million 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 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 – 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.