BMW taps German debt market as coronavirus batters auto industry

BMW’s return to the Schuldschein market came as the spread of the coronavirus damps the global economy and hammers auto demand.
By : Bloomberg
| Updated on: 31 Mar 2020, 03:23 PM
File photo (AFP)
File photo (AFP)
File photo (AFP)
File photo

Bayerische Motoren Werke AG sold a 200 million-euro ($220 million) deal in the German Schuldschein debt market even as coronavirus upheavals weigh on the global auto industry.

The private five-year sale was bought by only one or two investors, and it priced at as much as 150 basis points over mid-swaps, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Bayerische Landesbank led the deal, which closed last week.

BMW’s return to the Schuldschein market came as the spread of the coronavirus damps the global economy and hammers auto demand. The Munich-based automaker is preparing to idle its biggest factory -- in South Carolina --- from April 3.

(Also read: Coronavirus: Carmakers across the world warned of coming ‘credit shock’)

Similar Cars

Find More Cars
Bmw X1 (HT Auto photo)
Bmw X1
1998 cc | Petrol | Automatic (Dual Clutch) | 14.82 kmpl
₹36.5 - 43.5 Lakhs**Ex-showroom price
Bmw 2 Series Gran Coupe (HT Auto photo)
Bmw 2 Series Gran Coupe
1998 cc | Petrol | Automatic (Torque Converter) | 14.82 kmpl
₹37.9 - 42.3 Lakhs**Ex-showroom price
Bmw 3 Series (HT Auto photo)
Bmw 3 Series
1998 cc | Petrol | Automatic (Torque Converter) | 16.13 kmpl
₹42.3 - 62.9 Lakhs**Ex-showroom price
Bmw 3 Series Gran Limousine (HT Auto photo)
Bmw 3 Series Gran Limousine
1998 cc | Petrol | Automatic (Torque Converter) | 15.3 kmpl
₹51.5 - 54.9 Lakhs**Ex-showroom price
Bmw X3 (HT Auto photo)
Bmw X3
1998 cc | Petrol | Automatic (Torque Converter) | 13.17 kmpl
₹57.5 - 64.9 Lakhs**Ex-showroom price
Bmw 5 Series (HT Auto photo)
Bmw 5 Series
1998 cc | Petrol | Automatic (Torque Converter) | 14.82 kmpl
₹63.4 - 73.5 Lakhs**Ex-showroom price

The Schuldschein is for general corporate purposes, the automaker said in an emailed response to Bloomberg News questions. Its financial and liquidity status is stable with no major changes versus the end of last year.

The company has “no intention to draw" on its 8-billion euro revolver facility, which is due in July 2023.

Other global automakers including Daimler AG, Ford Motor Co., General Motors Co., and Toyota Motor Corp. have tapped banks to shore up finances during the health crisis. The companies have either drawn multi-billion revolving facilities or sought new credit lines.

First Published Date: 31 Mar 2020, 03:23 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city