11/05/11

Würth Group successfully issues first EUR 500 million benchmark bond on Eurobond market

Künzelsau/’s-Hertogenbosch. The Würth Group took advantage of the favorable conditions in the capital markets to acquire long-term funds and very successfully issued a EUR 500 million Euro bond in the market through its Amsterdam-based finance company Würth Finance International B.V.

The bond with a term of seven years carries an annual coupon of 3.75 percent p.a. and is secured through an unconditional, irrevocable guarantee by Adolf Würth GmbH & Co. KG (Künzelsau/Germany). The bond was given a credit rating of “A/outlook stable” by Standard & Poor’s and an “A minus / outlook stable” by Fitch Ratings.

For the first time in four years, the Würth Group has taken up means on the Eurobond market again. Deutsche Bank, HSBC and Unicredit were mandated as book runners of the transaction. DZ Bank, Landesbank Baden-Württemberg and Internationales Bankhaus Bodensee AG, which is held to 90 percent by the Würth Group, supported the successful issuance as co-lead managers.

The issue was very well received by investors and oversubscribed more than four times with tender offers of more than EUR 2.5 billion within just one hour. The bonds were allocated to private and institutional investors from Germany (54 percent), the UK (12 percent), Switzerland (11 percent) and other European countries. The transaction had a re-offer spread of 68 basis points, which is at the lower end of the range communicated at the beginning of the book-building process and confirms the good reputation of the Würth Group among the international investors.

The proceeds of the issue secure the early refinancing of bonds maturing in 2012 with a volume of more than EUR 100 million and CHF 300 million. Over the coming months, the Würth Group also plans to carry out a separate transaction to refinance a private placement in the US of USD 200 million maturing in September 2011. This way, the Würth Group strengthens its long-term funding and liquidity basis for further growth of its sales capacities and investments into logistics and infrastructure.

Robert Friedmann, Chairman of the Central Managing Board of the Würth Group: “The vivid interest displayed by investors and the successful issue of the Eurobond is evidence of the high degree of trust placed in the Würth Group as a family business by the capital market participants.”

Legal disclaimer: This press information is neither an offer for sale nor a request to buy securities of the Würth Group. This press release as well as the information contained must neither be passed on to the United States of America (USA), nor be distributed within the USA, to US persons (including legal entities) or to publications publicly distributed in the USA. This press release does not constitute an offer or solicitation of an offer to buy securities in the USA. The securities of the Würth Group are not offered for sale in the USA.