DÜSSELDORF (dpa-AFX) - The Rheinmetall defense group is raising money for the acquisition in Spain announced in November via a convertible bond. The group plans to raise a total of one billion euros, as it announced in Düsseldorf on Tuesday. The bonds will be offered exclusively to institutional investors. The money is to be used to finance a significant part of the planned acquisition of Spanish munitions manufacturer Expal. Two tranches of the same size with different maturities are expected to be issued at coupon rates of 1.625 to 2.125 percent and 2.0 to 2.5 percent. The convertible bonds can be converted into up to 3.14 million new or existing shares. Both series have a conversion premium of between 40 and 45 percent.

Rheinmetall had announced in mid-November that it would acquire Expal from Spain's Maxam Holding, with the purchase price based on an enterprise value of €1.2 billion. The deal is targeted for completion by summer 2023./men/mis