In May, Siemens successfully placed E2.5bn of convertible bonds. The bond was priced at a 1.375% coupon and a premium of 46% and is convertible into 44.5 million shares of Siemens AG.
The bond was noted for a special feature that will prevent dilution of Siemens’ earnings per share. The bond is the first with a contingent conversion structure to be issued in Europe, which allows the company to enter all proceedsas borrowings.
