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FRANKFURT - Fresenius Medical (TASE:BLWV) Care (NYSE:FMS) AG, a leading healthcare company, has successfully completed the issuance of EUR 1.1 billion in bonds, according to a post-stabilisation period announcement by Deutsche Bank AG (ETR:DBKGn), Frankfurt. The bonds were divided into two tranches: EUR 600 million with a 3.125% interest rate maturing in four years, and EUR 500 million at a 3.75% interest rate due in seven years.
The securities, with ISIN codes XS3036647694 and XS3036647777, were issued at prices of 99.558 and 99.372 respectively. The spreads were set over the benchmark German government bonds, with the four-year bonds at DBR 0 11/15/28 +114.5 basis points and the seven-year bonds at DBR 0 02/15/32 +139.9 basis points.
Deutsche Bank AG, along with BNP Paribas (OTC:BNPQY), Citigroup (NYSE:C), and ING, acted as stabilising managers for the issuance. However, it was noted that no stabilisation activities were undertaken by these managers during the process. Stabilisation activities are typically conducted to support the market price of securities after their initial offering.
The announcement clarified that the bonds have not been and will not be registered under the United States Securities Act of 1933, indicating that the securities may not be offered or sold in the United States absent registration or an exemption from registration. Furthermore, there will not be a public offer of the securities in the United States.
This bond issuance comes as part of Fresenius Medical Care AG’s financing strategy. The company specializes in products and services for individuals undergoing dialysis due to chronic kidney failure, and this financial move may support its ongoing operations and potential expansion activities.
Investors should note that the information regarding the bond issuance is based on a press release statement and does not constitute an offer to underwrite, subscribe for, or otherwise acquire or dispose of any securities. The news comes amid a dynamic market environment where healthcare companies continue to seek various funding avenues for growth and operational sustainability.
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