Vonovia successfully issues unsecured corporate bonds totaling € 4 billion with an average coupon of 0.6875%
- 5 bonds with an average maturity of 9.5 years
- Highly attractive: new issue demand of nearly € 18 billion
- Proceeds mainly designated for financing the planned merger with Deutsche Wohnen SE
- Moody’s gives Vonovia investment grade rating “A3” and “Stable Outlook”
Bochum, 10 June 2021 – Vonovia SE has successfully placed 5 fixed-rate unsecured bonds totaling EUR 4 billion today.
- € 500m / 3.25 years / coupon 0.000%
- € 1,000m / 6 years / coupon 0.375%
- € 1,000m / 8.5 years / coupon 0.625%
- € 1,000m / 12 years / coupon 1.000%
- € 500m / 20 years / coupons 1.500%
The proceeds will mainly be used for financing the planned merger with Deutsche Wohnen SE as well as for upcoming repayments.
Helene von Roeder, Chief Financial Officer at Vonovia, says: “The successful placement of the corporate bonds is an important signal from the capital market. We are happy that investors see the merger with Deutsche Wohnen as strategically sensible for our company.”
Attracting substantial demand of nearly € 18 billion, the bonds were oversubscribed 4.5 times. Vonovia’s capital structure and cash position remain extremely healthy. Once the entire process has been completed, all the relevant information about the issue will be available on Vonovia’s investor relations website, in the Creditor Relations subsection. This is also where investors can find information about the European Medium Term Notes Programme (EMTN).
First Moody's rating for Vonovia
The rating agencies have recognized Vonovia’s ongoing positive business development and robust business model. Moody’s is now the third major rating agency to place Vonovia in the investment grade range. It has rated Vonovia as “A3” with a stable outlook. In its assessment, Moody’s cites, among other things, Vonovia’s focus on “stable and regulated markets” in Germany and elsewhere, its “diversified business model” and its “excellent access to capital”. “This positive rating from Moody’s is further confirmation of our business model. The investment grade credit rating further reinforces our attractiveness to national and international lenders,” says Helene von Roeder. Standard & Poor’s continues to rate Vonovia as “BBB+”, and Scope as “A-”.