BERLIN (dpa-AFX) - Knorr-Bremse AG (KNRRY.PK), a German manufacturer of braking systems for rail and commercial vehicles, Tuesday said it has issued a dual tranche bond of 1.1 billion euros with maturities of five and eight years. The bond issued yesterday was significantly oversubscribed. This includes the company's first Green Bond.
The company said that the proceeds of 500 million euros from the 8-year bond with a coupon rate of 3.25 percent will be utilized for eligible green projects. It intends to use 600 million euros proceeds from the 5-year, 3 percent bond for general corporate purposes including partial financing of the bond maturity in 2025.
'Using the funds from the Green Bond, we will push ahead with our sustainability plans and strengthen our position as a trailblazer of sustainability and green mobility for our customers. The major interest of investors emphasizes the strong confidence in our strategy,' said Frank Markus Weber, Chief Financial Officer of Knorr-Bremse.
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