MTU Aero Engines AG successfully places corporate bond

Munich, September 12, 2024 | MTU Aero Engines AG has successfully placed a corporate bond on the capital market. The bond has a total par value of 750 million euros and carries a coupon of 3.875 percent. Its term of seven years means that the bond will mature on September 18, 2031. The funds are being used to refinance MTU's existing corporate bond ahead of schedule and for general corporate financing.

The bond has been acquired by more than 200 national and international investors. “We are delighted to announce the successful placement of the largest corporate bond with the longest maturity in the history of MTU Aero Engines,” says Peter Kameritsch, CFO and CIO of MTU Aero Engines AG. “With a volume of over three billion euros, the bond was significantly oversubscribed. This underlines investors' confidence in our strategic orientation and our strong credit profile. As part of the bond book building process, we were able to significantly narrow the initial price.”
 
The bond is expected to be rated Baa3 by Moody’s and BBB by Fitch.

It will be listed on the regulated market of the Luxembourg Stock Exchange. The nominal amount has been divided into units of €1,000 each.

The transaction was arranged by BNP Paribas, Commerzbank, and UniCredit.

MTU’s corporate bond from 2020 has a par value of 500 million euros and matures on July 1, 2025.