Schroder Salomon Smith Barney and SG Investment Banking have beaten rival investment banks to the mandate for a euro-denominated benchmark bond for Deutsche Bahn, the German state-owned railway operator.

The 10-year transaction, which will be Deutsche Bahn's only foray into the euro market in 2002, will partially refinance the firm's €2.5bn ($2.47bn) acquisition of a 65% stake in Stinnes, the German logistics group, from utility company E.ON.