CashNews.co
German manufacturer of braking systems for rail and commercial vehicles Knorr-Bremse said on Tuesday it has issued a bond of €1.1 billion ($1.22 billion) in two tranches, which will mature in five and eight years.
The bond issued on Monday was significantly oversubscribed. This includes the company’s first Green Bond.
The company said that the proceeds of €500 million from the eight-year bond with a coupon rate of 3.25% will be utilized for eligible green projects.
It intends to use €600 million proceeds from the five-year, 3% bond for general corporate purposes, including partial financing of the bond maturity in 2025.
“Using the funds from the Green Bond, we will push ahead with our sustainability plans and strengthen our position as a trailblazer of sustainability and green mobility for our customers,” said Frank Markus Weber, chief financial officer of Knorr-Bremse.
“The major interest of investors emphasizes the strong confidence in our strategy.”