21 January 2014 17:51 [Source: ICIS news]
LONDON (ICIS)--Bayer has successfully issued €2bn in bonds to help finance possible acquisitions and general corporate purposes, the Germany-based international chemicals and pharmaceuticals major said on Tuesday.
Bayer did not provide details about acquisitions it may target. The bond issue comes as Bayer this week began its €2.1bn takeover of Norwegian pharmaceuticals company Algeta.
Bayer said that with the bond issue it was taking advantage of currently low interest rates to raise debt capital on favourable terms.
The issue included a €750m four-year fixed-rate eurobond with a coupon of 1.125%, a €750m seven-year fixed-rate eurobond with a coupon of 1.875%, as well as a €500m two-year floating-rate eurobond issued at 22 basis points over three-month Euribor (Euro Interbank Offered Rate), Bayer said.
"The issuances met with exceptionally high demand on the capital market and the order book was over four times oversubscribed," the company said.
CFO Werner Baumann added: "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," Baumann said.
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