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Leverkusen, January 21, 2014 – Bayer is taking advantage of currently low interest rates to raise debt capital on favorable terms. The Group today successfully issued three Eurobonds with a combined volume of EUR 2 billion. The proceeds will be used for general corporate purposes and possible acquisitions.
All the tranches were placed on attractive terms. The EUR 500 million two-year floating-rate Eurobond was issued at an interest rate of 22 basis points over three-month Euribor. The EUR 750 million four-year fixed-rate Eurobond carries a coupon of 1.125%, and the EUR 750 million seven-year fixed-rate Eurobond carries a coupon of 1.875%. The issuances met with exceptionally high demand on the capital market and the order book was over 4 times oversubscribed.
Said Werner Baumann, CFO of Bayer AG: “The successful placement of these benchmark bonds confirms Bayer’s high standing on the capital market. We have used our strong position as an issuer and the positive market environment to improve our debt and liquidity structure.”
Bank of America Merrill Lynch, Barclays, Commerzbank and Société Générale arranged the transaction as active bookrunners. Credit Suisse, Morgan Stanley and UBS are passive members of the consortium.
Bayer: Science For A Better Life
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials. As an innovation company, it sets trends in research-intensive areas. Bayer’s products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2012, the Group employed 110,000 people and had sales of €39.7 billion. Capital expenditures amounted to €1.9 billion, R&D expenses to €3.0 billion. For more information, go to www.bayer.com.
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. 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 Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.