ZF Europe Finance raises €1.25bn in bond offering with 7% yield

Published 04/07/2025, 11:20
ZF Europe Finance raises €1.25bn in bond offering with 7% yield

FRANKFURT - ZF Europe Finance B.V., a subsidiary of ZF Friedrichshafen AG, has completed a €1.25 billion bond offering, according to a post-stabilization notice issued Friday.

The five-year notes, due June 12, 2030, carry a 7% interest rate and were priced at 100% of face value. The securities were issued with a spread of 491.1 basis points over the benchmark German government bond (OBL 2.40% maturing April 18, 2030).

Deutsche Bank AG (ETR:DBKGn) Frankfurt, which served as one of the joint bookrunners alongside Citigroup (NYSE:C) and J.P. Morgan, confirmed in the announcement that no stabilization measures were undertaken following the initial offering period that began on June 4.

The bonds have been assigned the international securities identification number (ISIN) XS3091660194.

ZF Friedrichshafen AG, one of the world’s largest automotive suppliers, is providing a guarantee for the notes issued by its finance subsidiary.

The securities have not been registered under the U.S. Securities Act and were not offered to investors in the United States, according to the statement.

The announcement was made through the London Stock Exchange (LON:LSEG)’s Regulatory News Service (RNS).

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