Bank of China recently served as the sole Chinese joint lead manager in assisting Continental AG to successfully issue a €750 million senior public bond with a coupon rate of 3.625%. The final pricing of this bond tightened significantly by 27 basis points from the initial price guidance, while attracting an oversubscription of 2.53 times.
Notably, orders from Asian investors accounted for 10% of the total allocation, underscoring the strong global investor confidence in Continental AG's credit profile and transformation strategy. Throughout the execution of this transaction, Bank of China's domestic and overseas institutions worked in efficient coordination, leveraging its distribution network expertise in offshore bond underwriting to precisely capture favorable market windows and assist the issuer in securing highly competitive financing costs.
This issuance once again showcased Bank of China's leading advantages in European institutional presence and client resources, further solidifying its market position in financing for top-tier European corporations. As the Chinese bank with the longest history in Germany, the most extensive branch network, and the broadest product range, Bank of China has long been committed to the German market. Through the BOC Europe EU Bond Underwriting and Distribution Center, it has expanded its offshore bond underwriting business to help clients diversify funding channels and achieve breakthroughs in Europe's mainstream corporate bond market.
In another milestone, Bank of China acted as the sole Chinese underwriter for German airline Lufthansa's successful €750 million bond issuance. This participation marks a significant shift for Chinese banks—transitioning from their traditional role as cross-border capital conduits to becoming key players in global credit pricing and the formulation of international capital market rules, thereby laying a solid foundation for enhancing the influence of Chinese financial institutions in global markets.
Beyond Europe, Bank of China has also been instrumental in supporting European enterprises' access to China's capital markets. In 2014, it assisted Mercedes-Benz, the first European panda bond issuer, in making its debut, pioneering the panda bond market for European companies. Since then, Bank of China has successively facilitated the first panda bond issuances for German firms including BMW, BASF, Bayer, and Henkel, establishing itself as the partner of choice for multinational corporations entering the panda bond market.
Continental AG, founded in 1871 and headquartered in Hanover, Germany, is one of the world's leading suppliers of automotive technology and mobility components. Its core business areas encompass chassis and safety systems, connectivity and vehicle networking services, autonomous driving solutions, and high-quality tire technology. Currently, Continental AG is actively advancing its strategic transformation toward intelligent mobility.