- Sustainability as integral part of Evonik’s finance strategy
- Proceeds primarily used to finance investments in Next Generation Solutions
- Volume of €750 million with maturity in 2027 fits well into balanced maturity profile
Essen, Germany. Evonik Industries AG successfully issued a green bond with a nominal volume of €750 million on Wednesday to refinance an upcoming bond maturity in January 2023 in the same volume. The senior bond is the specialty chemical company's second green finance issuance after the first green hybrid bond in summer 2021. It is based on Evonik’s Green Finance Framework published on August 24, 2021, which established sustainability as integral part of Evonik’s finance strategy.
As part of its transformation, Evonik sets itself ambitious sustainability targets. Amongst others, the sales share of products with superior sustainability benefits – Next Generation Solutions - shall be increased from 37 % in 2021 to over 50 % by 2030. The majority of the bond proceeds will therefore be allocated to finance investments in Next Generation Solutions. These include, for example, biosurfactants, innovative insulation materials and membranes for gas filtration.
The green bond was significantly oversubscribed and generated strong interest from a broad base of investors, especially institutional investors with a strong focus on sustainability. The interest coupon is 2.25 % per year with a term of 5 years and 4 months.
The bond will be rated in line with the ratings of Evonik Industries AG, which are a Baa2 (outlook stable) at Moody’s and BBB+ at S&P (outlook stable).
The issuance was arranged by Barclays, Commerzbank, Credit Suisse, Deutsche Bank, Mizuho and Société Générale as joint bookrunners.
Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of €15 billion and an operating profit (adjusted EBITDA) of €2.38 billion in 2021. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers. About 33,000 employees work together for a common purpose: We want to improve life today and tomorrow.
This publication constitutes neither an offer to sell nor a solicitation of an offer to buy securities. In particular, this document constitutes neither an offer to sell nor a solicitation of an offer to purchase securities in the United States. The securities of Evonik Industries AG described above (the "Securities") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U. S. Securities Act of 1933, as amended (the "Securities Act")) absent registration or an exemption from registration under the Securities Act. The Securities have not been and will not be registered under the Securities Act or the securities laws of any State of the United States. There will be no public offering of the Securities in the United States.
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.