Bayerische Landesbank (Bayern LB) has placed a €300 million ($320 million) promissory note loan (Schuldschein) for Munich-based MTU Aero Engines.

The bank acted as joint lead arranger with Landesbank Baden-Wurttemberg (LBBW).

The promissory note is divided into two tranches: €161 million with a tenor of three years and €139 million with a tenor of five years.

The offering attracted 50 investors, mainly savings banks as well as national and international private banks.

High demand from investors led to a €100 million increase in the offering from €200 million originally. The proceeds will be used for general corporate financing.

MTU’s financing achieved a two-and-a-half-fold oversubscription.