- Evonik issued a €500 million green hybrid bond with a 4.25% coupon.
- The bond has a 30-year lifetime with first redemption in 2031.
- Proceeds fund Next Generation Solutions like skin-identical ceramides and omega-3 from microalgae.
- BofA Securities, Barclays, and ING coordinated the issuance.
Green Hybrid Bond Issuance
Evonik Industries AG has issued a green hybrid bond worth €500 million with a 4.25% coupon. This marks the company's fourth consecutive green bond issuance, reinforcing its commitment to sustainable finance.
Bond Details
The bond has a formal lifetime of 30 years, with the first redemption option available in 2031. It benefits from Moody’s revised rating methodology, achieving a Baa3 investment-grade rating, and a BBB- rating from S&P.
Use of Proceeds
Funds will primarily support Next Generation Solutions and Technologies, focusing on products with superior sustainability profiles. Examples include skin-identical ceramides, anion exchange membranes for green hydrogen, and omega-3 fatty acids from microalgae.
Investor Interest
The bond was significantly oversubscribed, attracting strong demand from institutional investors focused on sustainability. BofA Securities acted as the hybrid structuring agent and global coordinator, with Barclays and ING as additional global coordinators.
