Porsche Automobil Holding breaks promissory note record
Die Porsche Automobile Holding broke a record with their latest promissory note. The issue has a volume of EUR 2.7 billion, making it the largest euro promissory note transaction ever. So far, ZF has held the title with a promissory note in the amount of 2.2 billion euros that the automotive supplier placed in 2015. It is the first promissory note from Porsche Automobil Holding.
Initially, the holding went to the market with a volume of just 500 million euros. Due to the record demand, the interest rate was set at the lowest end of the marketing range, according to a statement. The company did not give specific figures. The promissory note comprises eight tranches with terms of three, five, seven and ten years, which have both fixed and variable interest rates. Around 120 institutional investors participated in the promissory note.
The placement was arranged by Deutsche Bank, ING, LBBW and Unicredit. With the promissory note, the holding company is refinancing part of the bridge financing that it took out as part of the IPO of Porsche AG last year. The money was used to buy shares in the automaker. In total, the holding company raised around 7.1 billion euros in connection with the IPO and announced at the time that it would replace part of this financing by 2024.
