The subscription period for the new bond from Neue ZWL Zahnradwerk Leipzig ended today. The bond can be traded in the Open Market of the Frankfurt Stock Exchange from November 17th. The paper has a maximum volume of 15 million euros. With a term until 2022, it bears 6.5 percent interest annually. So far, investors have subscribed to the bond with a volume of 6.0 million euros.
Creditors of the bond, which expires in 2021 and bears 7.5 percent interest, were able to exchange their paper for the new bond. Use was made of this with a volume of 2 million euros. This means that 4 million euros are allotted to new subscriptions.
The bond, which will expire in 2021, has an outstanding volume of 12.28 million euros. The paper will be paid back on February 17, 2021 (Ash Wednesday). According to Neue ZWL, repayment is guaranteed.
The Neue ZWL intends to invest the fresh money in growth and new products. The focus is on hybrid and alternative drives as well as e-mobility.
Hubertus Bartsch, Managing Director of Neue ZWL Zahnradwerk Leipzig, about the issue: “The fresh funds from the new 2020/2022 bond give us the additional freedom we want for our planned growth investments. The repayment of the 2015/2021 bond was already secured before the current transaction due to our very good liquidity position. “
The issue is supported by the Quirin Bank.