25.10.2012

ZF issues €400 million bonded loans

Leading global transmission supplier ZF has guaranteed its long-term group financing by issuing bonded loans to the value of €400 million and secures the favourable current interest level.

"The fact that we could procure €400 million was a huge success for us and underlines the high level of trust investors approach the company," said Dr Konstantin Sauer chief finance officer. "Our bonded loans were oversubscribed several times. This shows that the investors support our approach of broadly extending our plants and production facilities worldwide and seizing the growth opportunities which the market provides for technologically leading companies."
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Dr Konstantin Sauer

ZF achieved high sales growth in 2010 and 2011 increasing by 38 and 20 percent to €15.5 billion. The company expects a further 10 percent growth to about €17 billion for this year. It invested about €1 billion last year, and expects to invest the same both this year and 2013 in new plants and production facilities at home and abroad.

“The issuing of the bonded loans for existing credit lines at banks was received very positively by the market,” said Sauer. “We selected bonded loans as financing instrument for several reasons including taking advantage of the interest level which is currently very favourable, for longer maturity periods and replace expensive loans from previous years. In addition, we diversified our external financing structure and expanded our investor base by issuing bonded loans with different maturity periods.”

ZF has 121 production companies in 27 countries and has more than 72 000 employees. The company is among the top 10 companies automotive suppliers worldwide.