Deutsche Post AG (DPW), Europe’s largest postal service, raised a 2 billion-euro ($2.7 billion) credit line as German borrowers take advantage of falling interest rates to refinance bank debt.
The five-year revolving facility replaces a loan of the same size more than two years before maturity “on more favorable terms,” according to a statement from the Bonn, Germany-based company. Citigroup Inc., Commerzbank AG, HSBC Holdings Plc and Deutsche Bank AG helped arrange the debt, which has two one-year extension options.
German borrowers with investment-grade ratings raised more than $30 billion of revolving credit facilities, a type of debt where money repaid can be borrowed again, this year compared with about $11 billion in all of 2012, according to data compiled by Bloomberg. Daimler AG (DAI), Siemens AG (SIE) and Evonik Industries AG (EVK) are lowering costs as banks compete to lend to the nation’s most creditworthy firms.
Deutsche Post will pay an interest margin of 30 basis points, or 0.3 percentage point, more than the euro interbank offered rate, according to data compiled by Bloomberg. The company’s previous loan paid a margin of 55 basis points, the data show.
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org.