VTG Successfully Places Bonds Worth 746 Million Euros

VTG Aktiengesellschaft has successfully placed corporate bonds worth 746 million euros in the US and Euro capital markets, once again underscoring the attractiveness of its business model. For the first time in the company’s history, these are ‘Green Private Placements’.

(Hamburg) – The bonds are certified as sustainable according to the criteria of the ‘Climate Bond Initiative’, as VTG’s core business – the leasing of freight wagons and the organization of rail freight transport – reduces CO₂ emissions compared to other modes of transport. Maturities of 12, 15, and 20 years provide long-term planning security. With coupon rates of under 2 percent, which are even more attractive than before the Covid-19 crisis, the company’s financing costs have also been further reduced. Standard & Poor’s has rated the bonds BBB, with a stable outlook.

Bonds as Part of Refinancing

The issuance of the bonds is part of a comprehensive process to consolidate VTG’s debt structure, culminating in the successful completion of a refinancing of 2.9 billion euros in May 2020.

Mark Stevenson, CFO of VTG AG, said:

“With the successful placement of the bonds, we have once again demonstrated VTG’s attractiveness to investors. The fact that the bonds were oversubscribed more than four times shows that investors appreciate the stability and resilience that VTG’s business model offers. Especially in the dynamic times of Covid-19, VTG has made a crucial contribution to supply security and scores with this reliability not only with customers but also in the capital market. That we were able to achieve a strong S&P rating again in the currently challenging economic environment is evidence of this resilience.”www.vtg.deImage: © VTG Aktiengesellschaft