Volkswagen controlled truck making conglomerate Traton has announced it has tapped into new capital markets in Australia, New Zealand to strengthen its global financing strategy.
The use of Australian bond markets is apparently a first for the German based International truck company which owns Scania, MAN in Europe and Navistar International in the USA
Traton says it has has successfully launched an Australian Medium Term Note (AMTN) program with a volume of $AUD 5.0 billion (approx. EUR 2.9 billion), in a step . that it says has allowed it to expand its capital market strategy beyond Europe opening up new investor groups in Australia, New Zealand, Japan, Singapore, and Hong Kong.
Traton says the AMTN program complements the existing EUR 18.0 billion European medium term note program, which has served as the central financing platform for the Traton Group since 2021.
With the new AMTN program, Traton says it is responding to the increasing financing needs and is focusing on currency diversification and regional investor base expansion.
The company says the Australian bond market offers sound diversification to international issuers, allowing global fund managers to invest in Australian dollars (AUD) on top of existing euro-based investments.
It says that in addition, Asian investors are active participants in the Australian dollar primary bond market on the basis of a local debt issuance program.
“With the new AMTN program, we are laying the foundation for further sustainable and flexible financing of our international growth strategy – especially in the area of financial services,” said Dr. Michael Jackstein, CFO and CHRO of the Traton Group.
Traton says it aims to use the AMTN program for general corporate purposes, with funds being transferred within the Traton Group where required. It said that the AMTN program is governed by the law of New South Wales, Australia.
