Chicago, Aug. 31 – Evonik Industries AG sold €500 million of 1 3/8% 60-year green notes (Ba1/BBB-) at 99.375 to yield 1˝% on Tuesday, according to details from a market source.
The interest rate is fixed for the first five years. The rate resets on Dec. 2, 2026 and then every five years thereafter. The rate resets at the five-year swap rate plus the initial credit spread plus step-ups in certain years. The rate has a step-up of 25 basis points in 2031 and 75 bps in 2046.
The notes would be redeemable with a make-whole premium until Sept. 2, 2026. After that date, they are redeemable in whole, but not in part, until Dec. 2, 2026 and then on any annual interest payment date thereafter.
The notes can also be redeemed for a tax event or a rating agency event at 101 before the first optional redemption date. A change-of-control event would trigger a 500 bps step-up if a triggering event occurs and the notes are not called.
The notes are subordinated and interest can be deferred at any time at the option of the issuer. If deferred, the cumulative, non-compounding deferred interest payments would be due at the earliest of a compulsory settlement event, payment of interest on the notes or any parity instrument, or on the redemption or repurchase of the notes or any parity instrument.
Structuring agents and global coordinators are BofA and Citigroup.
Joint bookrunners for the notes are BNP Paribas, BofA (bill and deliver), Citigroup, HSBC and UniCredit.
Proceeds will be used to finance or refinance eligible green projects.
The notes will be listed on the Luxembourg Stock Exchange.
Evonik is a specialty chemicals company based in Essen, Germany.
| Issuer: | Evonik Industries AG
|
| Issue: | Green subordinated notes
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| Amount: | €500 million
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| Maturity: | Dec. 2, 2081
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| Bookrunners: | BNP Paribas, BofA, Citigroup, HSBC and UniCredit
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| Structuring agents: | BofA and Citigroup
|
| Coupon: | 1 3/8% initial rate; resets Dec. 2, 2026 and then every five years thereafter to five-year swap rate plus initial credit spread plus 25 bps step up in 2031 and 75 bps in 2046
|
| Price: | 99.375
|
| Yield: | 1˝%
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| Spread: | Mid-swaps plus 183.6 bps
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| Call features: | Make-whole call until Sept. 2, 2026; redeemable at par until Dec. 2, 2026 and then at par on any annual interest payment date thereafter; special call at 101 for a tax event, ratings event
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| Trade date: | Aug. 31
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| Settlement date: | Sept. 2
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Distribution: | Regulation S
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| ISIN: | DE000A3E5WW4
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