OREANDA-NEWS. Deutsche Post DHL Group, the world’s leading mail and logistics group, took advantage today of the favorable market conditions and successfully issued two senior bonds with a total nominal volume of EUR 1.25 billion to national and international investors. The Group plans to use at least EUR 1.0 billion of the capital raised to significantly increase the plan assets covering pension obligations to German employees. The company expects this step will improve its operating cash flow in future years and have a small positive impact on the Group financial result and its net income.

The first issue in the amount of EUR 750 million has a term of 5 years, an annual coupon of 0.375 percent and a spread over the corresponding mid-swaps rate of 45 basis points. In addition, the company placed a EUR 500 million bond with a ten year term, a 1.250 percent p.a. coupon and a spread of 70 basis points to the mid-swaps rate.

The transactions were executed by an international consortium of selected commercial banks of Deutsche Post DHL Group.

CFO Larry Rosen said: "The very positive response to today’s placement has again underscored our solid reputation on international capital markets. Deutsche Post DHL Group has developed strongly in the past years thanks to the consistent execution of Strategy 2015. With our Strategy 2020 we will build on this success and continue to deliver value for our investors."

Deutsche Post DHL Group is the world’s leading logistics and mail communications company. The Group is focused on being the first choice for customers, employees and investors in its core business areas worldwide. It makes a positive contribution to the world by connecting people and enabling global trade while being committed to responsible business practices and corporate citizenship.

Deutsche Post DHL Group operates under two brands: Deutsche Post is Europe’s leading postal service provider. DHL is uniquely positioned in the world’s growth markets, with a comprehensive range of international express, freight transportation, eCommerce, and supply chain management services.

Deutsche Post DHL Group employs approximately 500,000 employees in over 220 countries and territories worldwide. The Group generated revenues of more than 59 billion Euros in 2015.