Europe: Deutsche Borse issues benchmark bond

Global Finance, Jun 2003 by Platt, Gordon

Deutsche Borse, the Frankfurt-based exchange, launched an inaugural benchmark bond in the corporate Eurobond market on May 9, 2003.

The issue totaled 500 million euros, or about $580 million. It will mature on May 23, 2008, and carries a coupon of 3.375%.

Priced at 99.751, the Eurobond issue was three times oversubscribed and was distributed among 200 institutional investors. Approximately 60% of the issue went to investors in the UK, Switzerland, France and Italy. The remaining 40% of the bonds were placed with German investors.

The exchange said it would use the proceeds to replace a short-term financing it incurred to acquire Clearstream International, the global clearing and settlement organization, in July 2002.