Deutsche Börse issues digital billion euro bond with Linklaters

The first bond issued by a German company on a large scale under the Electronic Securities Act is worth three billion euros. The issuer is Deutsche Börse, which chose the digital issuing platform D7.

Until now, German bearer bonds have been compulsorily securitised by certificates in paper form and mostly planned under long preparation processes, often lasting several days.

Since the new Electronic Securities Act (eWpG) in 2021, which allows the dematerialised issuance of debt securities, there has been an alternative to this process. This reduces the need for coordination, transaction costs and, above all, can significantly reduce the time required for an issue. So far, however, the new process has not been used in any major bond issue by a German company.

Details on Deutsche Börse’s operation

Deutsche Börse’s current bond issue was made in three series and a denomination of 100,000 euros to around 2,000 investors. The first tranche of €1 billion bears interest at 3.875 per cent and matures in 2026, the second tranche of €750 million bears interest at 3.750 per cent and matures in 2029, and the third tranche of €1.25 billion bears interest at 3.875 per cent and matures in 2033.

Deutsche Börse intends to use the proceeds from the bonds to refinance the acquisition of the Danish software provider SimCorp. At €3.9 billion, this is the largest acquisition in the company’s history.

Deutsche Börse has been advised by Linklaters, with partners Alexander Schlee (pictured), Peter Waltz, Martin Rojahn; and associates Rowina Ullner, Catrin Retzmann, Moritz Buchholz. The company has also been advised by its in-house legal team, composed by Hendrik Schäfer (Head of Corporate & Commercial Legal), Ivo Frohmüller, Marco Tautges (both Principal Legal Counsel, Corporate & Commercial Legal).