Solvay may refinance €700 million hybrid bonds via 4.25% perpetuals

By Susanna Moon

Chicago, Nov. 27 – Solvay SA said it may refinance its €700 million hybrid bonds with a first call date in May 2019 using proceeds of a new issue.

Solvay placed €300 million of 4.25% perpetual hybrid bonds with a first call date on March 4, 2024 and a coupon that resets every five years, according to an announcement.

Proceeds will be used for general corporate purposes, including the possible refinancing.

"Solvay's portfolio transformation over the past few years has been accompanied by a significant improvement in cash generation and a progressive deleveraging,” Karim Hajjar, Solvay's chief financial officer, said in the press release.

“This successful issue is part of our active hybrid portfolio management aiming to optimize the group's capital structure and reduce financial charges while remaining fully committed to an investment grade rating and to the permanence and significance of hybrids as part of that strategy."

Solvay is a Brussels-based chemical manufacturer.

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