With the equity bond, CLAAS created a new financing instrument in Autumn 2004 as well as further scope to expand its growth strategy. The equity bond of over 80 million Euro is a “perpetual security”, which can be designated as equity capital according to the strict regulations of IAS/IFRS and US-GAAP, but in taxation terms, counts as borrowed capital.
The security has a coupon of 7.62% and an unrestricted term. However, CLAAS is entitled to terminate and pay back the credit after 2014. The allowance is only payable in those years in which CLAAS pays out dividends to members, however, claims may accumulate.The investor has no renunciation right.
Since April 2005, the security has been listed on the Luxembourg stock exchange under the WPK no. A0DLTL.
Become a fan!
