Schaeffler AG Announces Successful €850 Million Bond Placement

Schaeffler AG, a prominent industrial and automotive supplier, has successfully issued a corporate bond, raising 850 million euros through international investors. This fundraising effort took place on March 22, 2024, signalling a significant financial maneuver designed to bolster the company's financial structure.

The bond, featuring a 4.50 percent annual interest rate and maturing in 2030, aligns with Schaeffler's strategic initiatives to refinance its acquisition of Vitesco Technologies Group AG shares and to enhance the overall financing positioning of the company.

Claus Bauer, Schaeffler's CFO, expressed satisfaction with the successful bond issue, highlighting its role in securing long-term funding for the Vitesco acquisition and marking another crucial step in the transaction process.

The bond is slated for listing on the Luxembourg Stock Exchange's regulated market, with settlement anticipated by March 28, 2024. Financial institutions such as BNP Paribas, BofA Securities, Citigroup, and Deutsche Bank supported the bond placement as Joint Active Bookrunners.

This strategic financial move is part of Schaeffler's ongoing efforts to optimize its financial structure amidst broader corporate initiatives. The bond issuance further demonstrates the company's adeptness in navigating the capital markets to support its long-term strategic goals.