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Deutsche Börse AG executed today the successful issuance of EUR 550 million of hybrid capital, the first European public hybrid benchmark transaction in 2008. The funding is part of the long term re-financing of the International Securities Exchange (ISE) acquisition.
The subordinated bond has a maturity of 30 years and is callable by the issuer after five and ten years and every year thereafter. It pays a coupon of 7.5 percent for the first five years, which equates to a premium of 285 basis points over the corresponding 5-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 senior unsecured transactions, we are very pleased with the successful execution of 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 Börse", said Thomas Eichelmann, Chief Financial Officer of Deutsche Börse AG.
The transaction was 1.8 times oversubscribed in less than 4 hours of book building, allowing to upsize the transaction to EUR 550 million. Close to 60 investors were in the order book, with international orders accounting for 75 percent. A denomination of EUR 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.
