Chicago, Sept. 6 – Henkel AG & Co. KGaA priced €650 million of 2.625% five-year sustainability-linked bonds (A2/A) in the Tuesday market, according to a market source.
The notes priced at 99.649 to yield 2.701%, or with a 38 basis points spread to mid-swaps. Alternatively, the bonds priced at 139.9 bps to Bunds.
The bonds were launched at €500 million and initially talked in the 75 bps area to mid-swaps. Guidance was revised into the 45 bps area to mid-swaps.
Books went north of €3.2 billion.
The notes are callable with a make-whole premium of Bunds plus 25 bps until one month before the maturity date when they are callable at par.
There are three key performance indicators that could trigger a coupon step-up event. The interest rate is eventually tied to a carbon emission reduction, a reduction of scope 1 and 2 GHG emissions by 54% per ton of product by 2025 from a 2017 base year and an increased use of recycled packaging by 2025. The step-up margin is 37.5 basis points for the occurrence of each step-up event from the interest period starting in September 2026, up to a cumulative 75 bps increase.
The joint active bookrunners are BNP Paribas, BofA Securities, JPMorgan (billing and delivery) and NatWest Markets. GSI is a passive bookrunner.
The notes will be listed on the Luxembourg Stock Exchange.
Based in Dusseldorf, Henkel is a German multinational chemical and consumer goods company.
| Issuer: | Henkel AG & Co. KGaA
|
| Amount: | €650 million
|
| Issue: | Sustainability-linked bonds
|
| Maturity: | Sept. 13, 2027
|
| Bookrunners: | BNP Paribas, BofA Securities, JPMorgan (billing and delivery) and NatWest Markets (active), GSI (passive)
|
| Coupon: | 2.625%
|
| Price: | 99.649
|
| Yield: | 2.701%
|
| Spread: | Mid-swaps plus 38 bps, or Bunds plus 139.9 bps
|
| Call features: | Make-whole call at Bunds plus 25 bps; one month par call
|
| Trade date: | Sept. 6
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| Settlement date: | Sept. 13
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | Regulation S
|
| Price talk: | Initial price talk in mid-swaps plus 75 bps area; guided to mid-swaps plus 45 bps area
|
| ISIN: | XS2530219349
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