Hella has successfully placed a corporate bond of more than EUR300m (US$326m) on the capital market.
The bond has a term of seven years and pays a coupon of 1% per annum. It has attracted interest from respected institutional investors both in Germany and abroad, maintains the supplier. It was subject to high demand, indicated by the order book being over-subscribed around eight times.
“The issuance of the new bond allows us to improve our maturity profile and lower our financing costs,” said Hella Finance and Controlling managing director, Bernard Schäferbarthold
“Hella’s equity ratio of 42% and available liquidity of around EUR775m put us in an optimal position to continue to invest in automotive growth fields and to consolidate our position as an innovation leader.
“At the same time, we will continue to actively promote our international network strategy.”
The current issuance was conducted with the assistance of Deutsche Bank, LBBW, and UniCredit.
