Covestro issues EUR 500 million green bond

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.