Austria based man made cellulose fibre producer Lenzing AG said it has successfully issued and placed German Private Placement of unsecured senior debt amounting to €150 million.

This transaction took place in connection with the termination of the existing German Private Placements and the issuing of new securities including a volume increase to the current level of €290 million.

In a press release, Lenzing informed that it succeeded in attaining an extremely favourable interest rate averaging 1.43 per cent, with an average term to maturity of slightly less than seven years.

The German Private Placement was offered with a term to maturity of five to seven years, in each case at fixed and variable interest rates, as well as a term to maturity of ten years but only at a fixed interest rate.

“This successful issuing of a German Private Placement represents a vote of confidence on the part of the capital market, which positively assesses Lenzing’s long-term prospects,” CFO Thomas Riegler said.

“In this way, Lenzing has secured borrowed capital at a historically low interest rate for the upcoming years,” he added. (AR)