Covestro Issues €1 Billion Eurobond
LEVERKUSEN, Germany — On June 5, 2020, Covestro successfully placed a Eurobond with a total volume of €1.0 billion in the capital markets. The bond was issued in two tranches maturing February 2026 and June 2030 and pays a coupon of 0.875% and 1.375% respectively. Investor demand was high with the order book being more than 10 times oversubscribed.
The transaction allows Covestro to extend the average maturity of its bonds substantially. Proceeds of the bond placement will be used to further strengthen Covestro's liquidity in the current macroeconomic environment with the impact of the coronvirus pandemic, as well as providing funds for the 2021 bond maturity.
“The exceptional demand from investors for our bond clearly demonstrates that even in these challenging times, the capital market has continued confidence in Covestro and our robust financial policies,” said CFO Dr. Thomas Toepfer. “The placement of €1.0 billion Eurobond with long-dated maturities is part of our program to build substantial liquidity reserves whilst capturing attractive terms and pricing.”
BNP Paribas, Bank of America, Commerzbank and UniCredit supported Covestro as book runners on the issuance.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
.webp?height=200&t=1654523773&width=200 "evonik-brand-mark_deep-purple_rgb (1).jpg")