12/05/15

Würth Group successfully issues EUR 500 million benchmark bond

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 on 11 May 2015 through its financial company Würth Finance International B.V., based in Amsterdam, Netherlands.

The bond with a maturity of seven years carries an interest coupon of 1.00 percent p.a. and is secured through unconditional and irrevocable guarantees of Adolf Würth GmbH & Co. KG, Germany. Rating agency Standard & Poor’s has given the bond an "A, outlook stable" rating.

The bond was issued in cooperation with the joint lead managers DZ Bank AG, HSBC Bank plc, Landesbank Baden-Württemberg and Deutsche Bank AG. It took only a few hours from the time the issuance was announced to the time the entire transaction was closed. In a market that has lately been rather volatile, investors met this transaction with enthusiasm. Subscription offers on the final price reached almost three times the total amount of the volume issued. Thanks to the great demand on the part of investors, the credit spread of 50-55 basis points communicated at the beginning of the book-building process could be reduced to 45 basis points in the course of the placement. The risk premium, which is rather low compared to the peer group, reflects the great trust investors place in this world market leader based in Southern German Künzelsau. Investors may look forward to a yield to maturity of 1.0390 percent per year.

The proceeds of the issue strengthen the Würth Group's long-term funding and liquidity basis for further growth of the Group. The average maturity period of outstanding financial liabilities of the Würth Group is considerably extended. After the repayment of a bond amounting to CHF 225 million with an interest rate of 3.875 % due in August 2015, the average interest rate for interest-bearing debt of Würth will reduce by more than half a percentage point.

"At last week's annual financial press conference, we had the pleasure to announce record figures with annual sales of EUR 10.13 billion and an operating result of EUR 515 million for the past business year. Moreover, growth in the Group picked up even more speed in the last months, underpinning our ambitious targets. We can consider ourselves lucky that we were so successful in borrowing in the capital market. The low interest rates currently prevailing at capital markets were not the only decisive factor, it was also down to the trust investors place in the name of Würth. We owe this to and would like to particularly thank our customers and our more than 67,000 employees for their performance." said Joachim Kaltmaier, Member of the Central Managing Board of the Würth Group.

About the Würth Group

The Würth Group is the world's market leader in its core business, the trade in assembly and fastening materials. It currently consists of more than 400 companies in over 80 countries with more than 67,000 employees on its payroll. Around 30,000 employees are permanently employed sales representatives. In the Group's core business, the Würth Line, the sales program for craft and industry comprises more than 100,000 products: from screws, screw accessories and anchors over tools to chemical products and personal protective equipment.

The Allied Companies of the Würth Group, which either operate in business areas related to the core business or in diversified business areas, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards as well as financial services. They generate more than 40 percent of the Würth Group's sales volume.

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. In particular, this information does not constitute such an offer or solicitation to any person to whom it is unlawful to make such an offer or solicitation. 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 release solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg (CSSF). The prospectus is available free of charge at the seat of Würth Finance International B.V. or on the website www.wuerthfinance.net.