VTG AG successfully completes € 2.9 billion long-term refinancing – Testament to the strength and resilience of the business model

Hamburg, 20. May 2020

▪ VTG closes € 2.9 billion refinancing, reducing overall funding costs and significantly extending maturities

▪ Refinancing reinforces VTG’s capital structure, providing additional debt capacity to fund continuing investment plans

▪ BBB issuer credit rating assigned by Standard & Poor‘s

 

VTG Aktiengesellschaft (WKN: VTG999) has successfully completed the refinancing of VTG Group’s capital structure, establishing a solid long-term basis for further investment in the business. The € 2.9 billion refinancing includes committed credit lines to fund the continuing investment plans of VTG.

As part of the refinancing, Standard & Poor‘s assigned an investment grade BBB (outlook stable) issuer rating to VTG. This underpinned the move to a new Common Terms Debt Platform and resulted in a very positive impact on refinancing parameters, substantially lowering the overall funding costs and extending maturities to up to ten years. VTG has now also gained access to new funding sources in the debt capital markets for this and future debt issuance, further reinforcing the resilience of its long-term capital structure.

"We are very proud to close this landmark financing transaction. The BBB issuer credit rating from S&P, the extension of funding tenor and the reduction of funding costs in the depths of the Covid 19 crisis are achievements that reflect VTG’s position as a leading rail infrastructure business. It is a strong vote of confidence in the strength, stability and reliability of the VTG business model upon which our relationships with our core banks are based. It further yet again demonstrates the professionalism and resilience of the VTG organization in these challenging times" said Dr. Heiko Fischer, CEO of VTG AG. "This marks an important milestone in funding the long-term growth of the VTG Group and, once again, proves our ability to grow and rise to new challenges, even in times of crisis."

The refinancing process was supported by Credit Agricole CIB and Goldman Sachs International as Joint Financial Advisers, Arrangers and Placement Agents.