Covestro successfully issues EUR 500 million green bond
First green bond underscores commitment to sustainability
Covestro successfully issued its first green euro bond with a total volume of EUR 500 million on the capital markets on November 8, 2022. The bond has an annual interest coupon of 4.75 percent and matures in November 2028 with a term of six years. Due to high demand among investors, the bond was nearly five times oversubscribed.
"With our first ever green euro bond, we are once more demonstrating that, even in a globally challenging market environment, we are maintaining a clear focus on the circular economy and are embedding sustainability into all areas of our business," said Dr. Thomas Toepfer, CFO of Covestro. "The high demand among investors also, once again, demonstrates the high level of confidence the capital markets have in our strategic direction and forward-looking approach for managing the business."
With this step, Covestro has underscored its strong commitment to sustainability. The company will use all proceeds from the bond issue to finance sustainable projects that contribute to the circular economy or, for example, relate to renewable energy, energy efficiency and sustainable construction. With this transaction, Covestro is, on the one hand, advancing to become fully circular. On the other, the company is strengthening its liquidity base, particularly against the backdrop of a persistently volatile market environment, while at the same time extending the average maturity of its bond portfolio.
Covestro was supported in the placement of the bond by BNP Paribas, Deutsche Bank, ING and Société Générale.
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, cosmetics and health, as well as in the chemical industry itself.
The company is committed to becoming fully circular and aims to become climate neutral by 2035 (scope 1 and 2). Covestro generated sales of around EUR 15.9 billion in fiscal 2021. At the end of 2021, the company had 50 production sites worldwide and employed approximately 17,900 people (calculated as full-time equivalents).
This investor news may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.