Frankfurt, Germany-based Fraport AG, one of the major companies in the global airport business, has raised €1.15 billion ($1.36 billion) through a corporate bond placement, making it one of the biggest unrated corporate bonds in euros ever issued in the capital markets.
Fraport said the bond issue was noticeably oversubscribed and the issue was made in two tranches. The first tranche, with a volume of €800 million ($943 million), has a term of seven years, and the second tranche, with a volume of €350 million ($412 million), was issued to increase the bond already issued in 2020 that matures in July 2024.
Purchased by various European institutional investors and retail intermediaries, the Fraport bond will be listed in the regulated market of the Luxembourg Stock Exchange. A bank consortium comprising BayernLB, BNP Paribas, Commerzbank, DZ BANK and LBBW Bank acted as the joint lead-manager for the bond issue.
“We have already raised a total of roughly â‚