MTU Aero Engines has successfully placed a €300 million ($320.7 million) promissory note, increasing the original issue volume from €200 million ($213.8 million) after it saw high demand.
""We are delighted by the strong interest shown by investors,"" said the company's chief financial officer Peter Kamertisch. ""The offer was two-and-a-half times oversubscribed."" The promissory note is divided into two tranches: €161 million ($172 million) with a tenor of three years and €139 million ($148.5 million) with a tenor of five years.
The approximate 50 investors comprised of savings banks as well as national and international banks. The funding was arranged by Bayerische Landesbank and Landesbank Baden-Württemberg. The funds will be used for general corporate financing.
The company's gas turbines servicing brand MTU Power has extended its maintenance, repair and overhaul (MRO) contract with energy company Equinor ASA, which covers its LM-series industrial gas turbines until 2028. MTU Power will offer technical support for Equinor's expansion into Brazil and includes commitments to CO2 emission reductions. The contract had been originally signed in 2015.
MTU Aero Engines places €300 million promissory note, extends MRO contract for gas turbines
