UPDATE 1-Continental AG to tap junk bond markets a 2nd time

* To issue at least 750 mln eur in 7-yr notes

* Bond will improve company's debt maturity profile - CFO

* Final details to conditions to be announced in coming days

* Shares outperform gains in European auto index .SXAP

(Adds details, background)

FRANKFURT, Sept 2 (Reuters) - Indebted German auto parts supplier Continental AG (CONG.DE) plans to issue a second junk bond to help refinance more than 7 billion euros ($8.96 billion) in outstanding bank debt maturing in 2012.

Continental said on Thursday that the new notes would have a volume of at least 750 million euros, with the principal due to be repaid in seven years.

Final details on the volume and conditions of the issue will be made within the next few days, according to the company.

"After returning successfully to the bond market in July, our current as well as potential new investors indicated that they are still very interested in a further bond issuance," finance chief Wolfgang Schaefer said in a statement.

"We want to benefit from this demand to further reduce our bank loans as planned while at the same time further improving our debt maturity profile."

Before issuing a bond in July this year, Continental had last borrowed from investors in May 2004, when it launched a seven-year 350 million euro convertible.

Continental has mandated a banking consortium that is led by Deutsche Bank (DBKGn.DE), Bank of America Merrill Lynch (BAC.N), BNP Paribas (BNPP.PA), Credit Agricole CIB (CAGR.PA), DZ Bank AG and HSBC (HSBA.L).

Reuters reported on Tuesday that the company was planning to tap the debt markets again in the coming days. [ID:nWEA6314]

(Reporting by Christiaan Hetzner)