Germany's Degussa raises Euro1.25bn in debut bond issue

25 November 2003 10:21  [Source: ICIS news]

LONDON (CNI)--German specialty chemicals group Degussa said Tuesday it has raised Euro1.25bn ($1.49bn) from its first bond issue.

 

The size of the issue was increased from the planned Euro1bn as a result of strong investor demand, the firm said. The issue was three times oversubscribed, it added.

 

The ten-year bonds pay an interest rate of 5.125%. The discounted issue price of 98.99% translates into a credit spread of 0.75 percentage points over the 10-year swap rate.

 

Proceeds from the bond issue will be used to replace maturing debt while simultaneously extending the average life of the firm’s financial liabilities, said Degussa.

By: Russell Ong
+44 208 652 3214

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