The FINANCIAL — Bayer is taking advantage of currently low interest rates to raise debt capital on favorable terms. The Group today successfully issued three Eurobonds with a combined volume of EUR 2 billion. The proceeds will be used for general corporate purposes and possible acquisitions, according to Bayer AG.
All the tranches were placed on attractive terms. The EUR 500 million two-year floating-rate Eurobond was issued at an interest rate of 22 basis points over three-month Euribor. The EUR 750 million four-year fixed-rate Eurobond carries a coupon of 1.125%, and the EUR 750 million seven-year fixed-rate Eurobond carries a coupon of 1.875%. The issuances met with exceptionally high demand on the capital market and the order book was over 4 times oversubscribed, according to Bayer AG.
“The successful placement of these benchmark bonds confirms Bayer’s high standing on the capital market. We have used our strong position as an issuer and the positive market environment to improve our debt and liquidity structure,” said Werner Baumann, CFO of Bayer AG.
Bank of America Merrill Lynch, Barclays, Commerzbank and Société Générale arranged the transaction as active bookrunners. Credit Suisse, Morgan Stanley and UBS are passive members of the consortium.
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