Continental Strengthens Liquidity as a Precautionary Measure in Uncertain Economic Environment

• Two bonds with a total volume of €1.5 billion successfully placed on the capital market as part of a dual-tranche issue
• Interest rates are 2.125 and 2.5 percent, terms are 3.5 and 6.25 years; both issues were significantly oversubscribed
• Bonds are not subject to financial covenants or rating triggers
• Stefan Scholz, head of Finance & Treasury: “Continental has had, and still has, a very robust balance sheet. By issuing these bonds, we are taking advantage of a favorable opportunity on the capital market. We are taking early and timely precautions to ensure we are well prepared for any unforeseeable eventualities.”

Hanover, May 19, 2020. Continental has increased its liquidity reserves as a precautionary measure in view of the uncertain economic environment resulting from the coronavirus pandemic. Thus, the company yesterday successfully placed two bonds with a total volume of €1.5 billion on the capital market. Continental has therefore further strengthened its overall liquidity. As previously disclosed at the beginning of May, the company’s liquidity at the end of March amounted to €6.8 billion. The DAX company has a solid balance sheet, is financially independent and has sufficient room for maneuver in the current challenging situation worldwide. These strengths are also reflected in the company’s investment-grade credit rating from the major rating agencies.

“Continental has had, and still has, a very robust balance sheet. By issuing these bonds, we are taking advantage of a favorable window on the capital market. We are taking early and timely precautions to ensure we are well prepared for any unforeseeable eventualities”, explained Stefan Scholz, head of Finance & Treasury at Continental. He added: “We continue to have access to various financing sources and welcome the confidence shown by bond investors in Continental.”

As part of a dual-tranche issue, Continental successfully placed two bonds with different respective volumes, terms and maturities on the market. The securities, which were issued under Continental’s Debt Issuance Programme, were significantly oversubscribed and have a volume totaling €1.5 billion. One bond has a volume of €750 million, with a term of 3.5 years and a 2.125 percent coupon. The second bond has a volume of €750 million, a term of 6.25 years and a 2.5 percent coupon.

The bookrunners were BNP Paribas and BofA Securities, as well as Crédit Agricole CIB, Citi, Commerzbank, Deutsche Bank, J.P. Morgan, Mizuho Securities, SMBC Nikko and UniCredit Bank. Continental continues to have a highly diversified and balanced maturity profile. The next maturity date will occur in September 2020, when a €750 million bond with a coupon of 3.125 percent expires.