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VTG concludes financing of AAE acquisition 27 January 2015

New channel of funding which is interesting for the future

VTG has placed a hybrid bond on the capital market for the first time. The bond’s volume add up to €250.0 million. The bond forms part of a comprehensive financing concept with a total volume of €370.0 million to finance the acquisition of the wagon hire company AAE – Ahaus Alstätter Eisenbahn Holding AG.

This is the first time in the history of VTG that it has selected the hybrid bond as a financial instrument.

The Company is very pleased about how this has been received in the capital markets, which underlines the confidence international investors have in the corporate strategy and the growth path of VTG.

The transaction was presented to potential investors in Germany, Switzerland, France and England in mid-January and it generated great interest. The bond is listed at the unregulated market segment of the Luxembourg Stock Exchange. With an interest rate of 5.0%, the equity-like and, in comparison to other financial liabilities, subordinated bond can be called after five years. The interest rate will subsequently increase by three percentage points. The date of issue was January 26, 2015.

After going public in 2007 and the refinancing through a US private placement in 2011, the hybrid bond has allowed VTG to open up a new channel of funding, which is also interesting for the future. The bond placement provides the company with access to new groups of investors and offers them an additional option of involvement in VTG.

The hybrid bond is associated with the financing of VTG’s purchase of AAE. The other components are a capital increase in the amount of 7.4 million new VTG shares, which has already been carried out, as well as a cash component amounting to €15.0 million.

The merger has created the only full-service provider for all essential wagon segments for rail freight traffic in Europe.