- EUR triple-tranche issued out of recently established €12.0 bn debt issuance program
- Bond debut represents further milestone in strengthening of TRATON’s access to capital markets
- Order book substantially oversubscribed, allowing upsizing of the transaction
- Bond issuance allows financing future tasks at low-interest rates and gives very high degree of flexibility in terms of timing
Munich, March 25, 2021 – TRATON has issued a total of €3.0 bn senior notes in its bond market debut. The triple-tranche transaction includes a €1.0 bn 4-year fixed rate tranche at 0.125% coupon, a €1.25 bn 8-year fixed rate tranche at 0.750% coupon and a €750 mn 12-year fixed rate tranche at 1.250% coupon, all issued by TRATON Finance Luxembourg S.A., an indirect subsidiary of TRATON SE. TRATON SE is guaranteeing the payment obligations of TRATON Finance Luxembourg S.A. under the bonds and is rated Baa1 (outlook negative) by Moody’s and BBB (outlook negative) by S&P. The net proceeds from the issuances will be used for general corporate purposes including acquisition financing. The bonds have been listed on the regulated market of the Luxemburg Stock Exchange.
Following a 1.5-day virtual deal-related roadshow, TRATON saw very strong investor perception with order books surpassing €10 bn on the pricing day of transaction. Due to the strong order book, all three tranches have been significantly oversubscribed, thereby allowing for pricing to be trimmed in all tranches.
Christian Schulz, CFO of TRATON SE: „With our bond debut, we have set a further milestone in strengthening the capital markets access for TRATON. In less than one year, we set up TRATON SE’s first-time credit ratings with S&P and Moody’s, have successfully signed our €3.75 bn syndicated revolving credit facility, issued our €700 mn debut Schuldschein (both ESG linked) and now have executed our inaugural bond transaction out of our recently established €12 bn EMTN program. The strong interest in our debut bonds is an infallible signal of trust from investors in TRATON’s solid capital structure and business strategy. The bond issuance allows us to finance the tasks ahead at attractive interest rates and gives us a very high degree of flexibility in terms of timing.”
The bonds were priced on March 17, 2021 and settled on March 24, 2021. Commerzbank, Citi, Deutsche Bank, Santander and Société Générale were acting as joint Active Bookrunners with Deutsche Bank co-ordinating the virtual deal-related roadshow.
The €12 bn debt issuance program allows TRATON to efficiently raise funds in the debt capital markets in a flexible and efficient manner. Besides TRATON SE, indirect subsidiary TRATON Finance Luxembourg S.A. can issue bonds under the EMTN program. TRATON SE and TRATON Finance Luxembourg S.A. aim to use the EMTN program for general corporate purposes, with funds being transferred within the TRATON GROUP where required.
Contact:
Rolf Woller
Head of Treasury & Investor Relations
T +49 (0)89 36098-335
rolf.woller@traton.com
Philipp Lotz
Treasury & Investor Relations
T +49 (0)89 36098-283
philipp.lotz@traton.com
Matthias Karpstein
Business Media Relations
T +49 172 360 30 71
matthias.karpstein@traton.com
TRATON SE
Dachauer Str. 641
80995 Munich, Germany
With its brands Scania, MAN, Volkswagen Caminhões e Ônibus, and RIO, TRATON SE is one of the world's leading commercial vehicle manufacturers. Its range comprises light-duty commercial vehicles, trucks, and buses, at 29 production and assembly sites in 17 countries. The Group aims to reinvent transportation — with its products, its services, and as a partner to its customers. For TRATON, sustainable economic growth always includes treating people and nature with respect. The People, Planet, and Performance triad will shape the future of our Company.