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Strong demand for Siemens bonds despite negative yields
Siemens issues bonds with a total value of €3.5 billion and maturities of two, five, ten and fifteen years
Investor demand more than four times higher than issue volume
Siemens secures most favorable financing conditions to date
Siemens has issued bonds with a total value of €3.5 billion. The transaction closed yesterday. The proceeds of the issuance will be used for general corporate purposes. Investor demand was very high. At around €15 billion, demand was more than four times the issue volume. More than 70 percent of the investors are from Germany, France and the UK.
The bonds have maturities of two, five, ten and fifteen years. On issuance, the twoyear tranche of €1 billion had a yield of a negative 0.315 percent. Never before has a corporate bond with a lower yield been offered on the primary market. On issuance, the five-year tranche of €500 million offered a yield of a negative 0.207 percent. The ten-year bond of €1 billion offered a yield of 0.179 percent, while the fifteen-year tranche, which also totaled €1 billion, had a yield on issuance of 0.550 percent.
“With this transaction, Siemens has again secured outstanding financing conditions. The high demand is proof of investor confidence in our financial strength and underscores our company’s excellent reputation on the capital market,” said Siemens CFO Ralf P. Thomas.
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