Dongfeng Motor to issue 500 million euro bond

The proceeds of the 500 million euro bond will be used to help pay off financing relating to its acquisition of PSA Peugeot Citroën Group

PUBLISHED : Thursday, 22 October, 2015, 8:05am
UPDATED : Thursday, 22 October, 2015, 4:49pm

Dongfeng Motor Group, China’s second largest automaker, said on Thursday it plans to issue three-year euro-denominated notes that will raise 500 million euro.

The net proceeds will be used to partially repay a loan to be provided by The Export-Import Bank of China and for general corporate purposes, according to a company filing to the stock exchange today. Dongfeng Motor said an 830 million euro bridge loan, the proceeds of which were used to fund its acquisition of

PSA Peugeot Citroën Group, will come due on October 25. The bonds will be listed on the Irish Stock Exchange or similar venue, the company said.