Construction site for the new Continental headquarters
The supplier is suffering from the long production break in the auto industry from mid-March to late April.
Hannover The car supplier and tire manufacturer Continental has raised billions of new debts to strengthen its financial cushion in the corona crisis. With two bonds, the market had raised 1.5 billion euros, said the DaxGroup in Hanover on Tuesday.
Given the uncertain economic situation resulting from the Covid 19 pandemic Conti brought more money into the house as a precaution, it said. At the end of March, liquidity was 6.8 billion euros. The long production break in the automotive industry from mid-March to the end of April draws on the funds of the branch companies. Suppliers such as Conti are also affected.
“Continental was and is still very solid on the balance sheet,” said the responsible head of finance, Stefan Scholz, according to the announcement. “We take early and timely precautions to be well prepared for any unforeseeable eventualities.” The bonds have terms of 3.5 and 6.25 years. The emissions were significantly oversubscribed, it said. The interest rate on both bonds is a good two percent.
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