Schaeffler places corporate bonds worth 1.1 billion euros

Schaeffler places corporate bonds worth 1.1 billion euros

According to a report by www.finanzen.net, the automotive supplier Schaeffler has successfully placed corporate bonds with a total volume of 1.1 billion euros with international investors. The company plans to use the proceeds to refinance the previous bridge financing for the acquisition of Vitesco. Through the acquisition of Vitesco, Schaeffler now has 79.82 percent of the share capital and voting rights in Vitesco.

The proceeds from the issue are expected to be used to fully refinance the acquisition offer and to further strengthen the company's financial situation. The issue of the bonds in two tranches with different terms and coupons indicates that Schaeffler wanted to secure the best conditions for refinancing. The fact that the bond placement was several times oversubscribed shows investor confidence in Schaeffler.

The placement of the bonds is expected to have a positive impact on the corporate bond market as it underlines Schaeffler's attractiveness to international investors. Low interest rates could also benefit consumers by reducing the cost of borrowing and financing. For the industry, this could be a signal of a recovery in the automotive sector, as Schaeffler is active in this area.

It remains to be seen how the refinancing will impact Schaeffler's long-term financial structure and competitiveness, but the successful completion of the placement gives the company a solid financial basis to advance its expansion plans. The stock market's positive reaction to the announcement also shows investors' confidence in Schaeffler's future prospects.