14/05/13

Würth Group successfully issues EUR 500 million benchmark bond

Künzelsau/s-Hertogenbosch.The Würth Group took advantage of the favourable conditions in the capital markets to acquire long-term funds and 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 1.75 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 a “BBB+ / outlook stable” by Fitch Ratings.

After the positive result experienced two years ago the Würth Group has placed its second benchmark bond in the Eurobond market. DZ Bank AG, HSBC Bank plc, Landesbank Baden-Württemberg and UniCredit Bank AG were mandated as joint lead managers of the transaction.

The issue was very well received by investors and oversubscribed eight times with tender offers of more EUR 4 billion within just two hours. The bonds were allocated to institutional and private investors from Germany (59 percent), the Switzerland (11 percent), UK (8 percent), France (6.5 percent), Scandinavia (6 percent) and other mainly European countries. The transaction had a re-offer spread of 60 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 refinancing of bonds and a promissory note certificates maturing in 2013 and 2014 with a total volume of EUR 400 million. This way, the Würth Group strengthens its long-term funding and liquidity basis for further growth of its sales capacities and investments into logistics systems and infrastructure.

Jürg Michel, Member of the Central Managing Board of the Würth Group explains: „The very issuer-friendly Corporate Bond market in recent months and record-low reference interest rates supported by the ultra-expansive monetary measures by the European Central Bank allowed us to further stabilise the Group Financing and to optimise the maturity profile of Würth’s debt capital. The investors’ vivid interest 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. It does not constitute an offer or solicitation of an offer to buy securities. In addition it does not form the basis for any contract to buy or subscription of notes issued by Würth Finance International B.V. The notes mentioned in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended and are subject to U.S. tax law requirements. Subject to certain limited exceptions, the notes may not be offered, sold or delivered within the United States of America or to U.S. persons.

Potential investors are requested to determine their investment decisions regarding the notes mentioned in this press relaease solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg. The prospectus is available free of charge at the seat of Würth Finance International B.V. or on the website www.wuerthfinance.net.