Umicore places €499 million fixed-rate sustainability-linked notes

By Mary-Katherine Stinson

Lexington, Ky., April 19 – Umicore completed a €499 million equivalent issue of fixed-rate sustainability-linked U.S. private placement notes, according to a press release.

The notes were placed with 17 institutional investors in Europe and North America, attracting interest both from investors who participated in previous placements as well as new investors.

The transaction is composed of several tranches with maturities ranging from seven to 12 years, corresponding to a weighted average maturity of more than nine years.

The interest rate of the notes will be directly linked to Umicore’s progress toward its carbon neutrality goals. Launched in June 2021, the company’s “Let’s go for Zero” sustainability campaign is about reaching carbon neutrality in 2035, with intermediate targets to reduce scope 1 and 2 greenhouse gas emissions by 20% in 2025 and by 50% in 2030 and to reduce the intensity of scope 3, category 1 purchased materials by 42% by 2030.

The company said that through the completion of this private placement offering, it substantially diversifies and extends its funding basis and the maturity of its debt at fixed-rate conditions.

Funds will be drawn upon in July.

Proceeds will be used for general corporate purposes, including the funding of Umicore’s projects under its 2030 RISE strategy.

The issue will complement the company’s new €350 million loan from European Investment Bank, which was signed in February, and its existing portfolio of long-term debt instruments. In addition, Umicore has committed currently undrawn syndicated bank credit facilities totaling roughly €1.1 billion and substantial additional uncommitted shorter-term funding instruments, including commercial paper.

Umicore is a materials technology company based in Brussels.

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