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Press Release28 May 2015Siemens AGMunich
Siemens issues its biggest bond to date
"This very successful bond placement has enabled us to considerably broaden our investor base, particularly in the U.S. ‒ and at conditions that are very favorable for our company. The high demand demonstrates that our debt investors also see Siemens as a high-quality investment. At the same time, we've optimized the maturity profile of our debt obligations," said Siemens CFO Ralf P. Thomas.
In the three-year category, Siemens placed floating rate bonds of US$500 million and fixed rate bonds of US$1.25 billion. The company also issued fixed rate bonds of US$1.0 billion with five-year maturities, of US$1.75 billion with seven-year maturities, of US$1.5 billion with ten-year maturities and of US$1.75 billion with 30-year maturities. This structure will create a more even distribution of future debt obligations.
About 80 percent of the volume has been allocated to investors from the U.S. The proceeds of the issuance will be used for general corporate purposes and financing of previously announced acquisitions.
Siemens' credit rating was unaffected by the bond issuance. The rating agency Standard & Poor's continues to give Siemens a long-term credit rating of A+ (outlook stable), while Moody's rating remains unchanged at A1 (outlook stable), placing Siemens' bonds in the high-quality "investment grade" category. The issuance is Siemens' largest capital market transaction to date.
For this press release
Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 165 years. The company is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. One of the world's largest producers of energy-efficient, resource-saving technologies, Siemens is No. 1 in offshore wind turbine construction, a leading supplier of gas and steam turbines for power generation, a major provider of power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. The company is also a leading provider of medical imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2014, which ended on September 30, 2014, Siemens generated revenue from continuing operations of €71.9 billion and net income of €5.5 billion. At the end of September 2014, the company had around 343,000 employees worldwide on a continuing basis. Further information is available on the Internet at http://www.siemens.com.
Contact
Wolfram Trost
Siemens AG
Wittelsbacherplatz 2
80333 Munich
Germany
80333 Munich
Germany
+49 (89) 636-34794