MTU Aero Engines AG Announces Early Redemption of Convertible Bonds

MTU Aero Engines AG has declared an early redemption of its EUR 500 million 0.05% fixed-rate Convertible Bonds, initially set to mature on 18 March 2027. The issuer invited bondholders to sell their holdings for cash, resulting in a repurchase of EUR 464.1 million, which is 92.82% of the total nominal amount. Following this, EUR 35.9 million remains outstanding, allowing MTU Aero Engines to exercise its right for early redemption under the terms and conditions of the bonds.

The company will redeem the remaining bonds on 6 March 2026, liquidating each at their specified denomination of EUR 100,000, plus accrued interest of EUR 48.36 per bond. Bondholders still have the option to exercise their conversion rights until 20 February 2026, as per the defined conversion period. The redemption process will be handled via the Principal Paying Agent, credited through the relevant clearing systems.