Chicago, June 26 – Deutsche Post AG priced €500 million of sustainability-linked bonds with a 10-year tenor on Monday (A2//BBB+), according to a source.
It is the inaugural issue under the sustainability-linked banner for the issuer.
The bonds priced with a 3.375% coupon at a discount of 99.824 to yield 3.396%, or at mid-swaps plus 45 basis points.
Pricing was reduced from talk in the mid-swaps plus 85 bps area, including a knockdown in guidance to the 55 bps area during pricing.
There will be a 25 bps step-up on the coupon if the company meets one or both sustainability performance targets, starting July 3, 2031.
The first target is related to scope 1 and 2 GHG emissions. The company is aiming to reduce emissions by 42% by 2030 from a 2021 base year. The second target is related to absolute scope 3 GHG emissions. Deutsche Post will be working to reduce scope 3 emissions by 25% by Dec. 31, 2030 from a 2021 base year.
There is the option of a three-month par call.
HSBC was the global coordinator.
Joint bookrunners were HSBC (billing and delivery), Commerzbank, ING and SEB.
Proceeds will be used for general corporate purposes, including to refinance existing liabilities.
Deutsche Post (Deutsche Post DHL Group) is a Bonn, Germany-based logistics and mail communication company.
| Issuer: | Deutsche Post AG
|
| Amount: | €500 million
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| Issue: | Sustainability-linked bonds
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| Maturity: | July 3, 2033
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| Bookrunners: | HSBC (billing and delivery), Commerzbank, ING and SEB
|
| ESG structuring agent: | SEB
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| Coupon: | 3.375%
|
| Price: | 99.824
|
| Yield: | 3.396%
|
| Spread: | Mid-swaps plus 45 bps
|
| Call features: | Three-month par call
|
| Change of control: | At par
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| Trade date: | June 26
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| Settlement date: | July 3
|
| Ratings: | Moody’s: A2
|
| Fitch: BBB+
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 85 bps area
|
| ISIN: | XS2644423035
|
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