VTG has successfully placed bonds in an amount of EUR 746 million on the US and European capital markets, once again underscoring the appeal of its business model. These, the first “green private placements“ in the history of the company, are certified as sustainable in accordance with criteria promulgated by the Climate Bonds Initiative: VTG’s core business – hiring out rail freight wagons and organizing rail freight transports – reduces CO2 emissions compared to other modes of transport. Maturities of 12, 15 and 20 years provide long-term planning security. At the same time, coupon rates of below 2 percent – similar if not better than before the Covid-19 crisis – have further reduced the company’s cost of financing. Standard & Poor’s has assigned the bonds a BBB rating with a “stable” outlook.
The bond placement is part of a far-reaching process designed to consolidate VTG’s debt capital structure – a process that peaked with the EUR 2.9 billion refinancing deal successfully concluded in May 2020. “Our successful placement of the bonds comes as yet more proof of how attractive VTG is to investors,” says Mark Stevenson, Chief Financial Officer at VTG AG. “The fact that the bonds were oversubscribed by a factor of four shows the value that investors place on the stability and resilience afforded by VTG’s business model. Especially in volatile situations such as the Covid-19 pandemic, VTG is instrumental in keeping supply lines open and scores highly with customers and capital markets alike for its reliability. The fact that we have again received a robust S&P rating in the current challenging macroeconomic climate testifies to this resilience.”