GERMANY: Robert Bosch issues EUR1bn bond
Hoping to strengthen its liquidity, Robert Bosch GmbH has issued a bond of EUR 1.1 billion.
The bond is divided in two tranches, one of which has a duration of four years and bears an interest rate of 3.75%, while the other has a maturity of eight years and yields interest of 5.125%.
Institutional investors have subscribed to the issue.
In April the German company reported a full year profit before tax for 2008 of EUR942m compared to the EUR3,801 a year earlier.
That was on sales of EUR45bn (of which EUR26bn was automotive).
Of the potential for a loss in 2009 the company said that first quarter sales were down 21%.
Chairman Franz Fehrenbach he expects second half sales to be down by a maximum of 3%.