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Deutsche Post to issue bonds, sees boost to earnings, cash flow
[BERLIN] Deutsche Post is taking advantage of favourable market conditions by issuing two senior bonds, with the transaction expected to improve operating cash flow and positively impact earnings in the coming years, it said on Wednesday.
The company plans to raise up to 1.25 billion euros (S$1.91 billion), of which at least 1 billion will be used to fund its pension obligations.
"We expect the measure to have a positive effect on our earnings and our cash flow," Chief Financial Officer Larry Rosen said in a statement.
The bonds are set to be priced and placed later on Wednesday.