Chicago, Dec. 9 – Lanxess AG placed €600 million of 0.625% eight-year sustainability-linked bonds (Baa2/BBB/BBB+) at 99.125, according to multiple announcements.
The benchmark offer was the first sustainable bond for the issuer. The company had previously signed a €1 billion sustainable revolving credit facility.
The interest rate is linked to the achievement of a reduction in CO2e emissions by 600,000 metric tons to 2.6 million metric tons by 2025, using 2018 as a base year.
The coupon will step up 25 basis points per year until the maturity date if the target is not met.
Proceeds from the bonds will be used to finance the acquisition of the microbial control business from U.S.-based group IFF.
Citigroup, Deutsche Bank and DZ Bank AG managed the sale.
The new bond will be listed on the Luxembourg Stock Exchange.
The specialty chemicals company is based in Cologne, Germany.
| Issuer: | Lanxess AG
|
| Amount: | €600 million
|
| Issue: | Sustainability-linked notes
|
| Tenor: | Eight years
|
| Bookrunners: | Citigroup, Deutsche Bank and DZ Bank AG
|
| Sustainability assessor: | ISS ESG
|
| Sustainability structurer: | Deutsche Bank
|
| Coupon: | 0.625%
|
| Price: | 99.125
|
| Trade date: | Nov. 23
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
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