23.05.2025

BMW’s New Corporate Bond: An Opportunity in the Low Interest Rate Environment

BMW recently launched a corporate bond with a volume of 750 million euros and an interest rate of 3.75%. This bond offers investors an interesting opportunity as it provides insights into the capital raising of a major DAX company and an attractive return in the currently low interest rate environment.

Strategic Financial Planning by BMW

The issuance of this bond is part of BMW’s comprehensive financial strategy. This also includes a substantial share buyback program with a volume of up to two billion euros, which is set to begin in May 2025 and is expected to be completed by April 2027 at the latest. The aim of this program is to increase earnings per share by reducing share capital.

A Look at the Market

Other large corporations, such as Kering, the parent company of Gucci, have also recently issued bonds with a similar volume. In comparison, the BMW bond with its interest rate of 3.75% offers a slight advantage over a Kering bond, which is rated at 3.125% and has a maturity of four and a half years. This higher interest rate makes the BMW bond particularly attractive to investors in the current market environment.

In summary, the issuance of the BMW corporate bond demonstrates the company’s active capital management in a challenging interest rate environment and represents a relevant investment option for investors.