Deutsche Boerse has executed the successful issuance of 550 million ofhybrid capital, the first European public hybrid benchmark transaction in2008.
The funding is part of the long term re-financing of the InternationalSecurities Exchange (ISE) acquisition.
The subordinated bond has a maturity of 30 years and is callable by theissuer after five and ten years and every year thereafter. It pays a coupon of 7.5% for the first five years, which equates to a premium of 285 basis points over the corresponding five year Euro swap rate at the time of pricing. It is structured to achieve rating agency equity credit.
“After the recent successful placement of our Euro and US-dollar seniorunsecured transactions, we are very pleased with the successful executionof the last major milestone in the ISE refinancing despite current volatile markets. This first public European hybrid-benchmark placement in 2008 is further proof of the strong financial standing of Deutsche Boerse”, says Thomas Eichelmann, chief financial officer, Deutsche Boerse.
The transaction was 1.8 times oversubscribed in less than four hours of book building, allowing to upsize the transaction to 550 million. Close to 60 investors were in the order book, with international orders accounting for 75%. A denomination of 1,000 was chosen to make the investment accessible for retail investors.
Deutsche Bank and Morgan Stanley acted as joint book runners. Dresdner Bank and BNP Paribas were joint lead managers.