Bayer €2 billion Bond Issue Will Fund Debt Capital

Bayer has launched a bond issue worth €2 billion, taking advantage of low interest rates to raise debt capital. The German group said proceeds from the issue of three Eurobonds through a consortium involving seven banks will be used for general corporate purposes and possible acquisitions.

The €500 million two-year floating-rate Eurobond was issued at an interest rate of 22 basis points over three-month Euribor, Bayer said. The €750 million four-year fixed-rate Eurobond carries a coupon of 1.125%, and the €750 million seven-year fixed-rate Eurobond carries a coupon of 1.875%.

The bonds are said to have met with "exceptionally high demand" from capital markets. The order book was over four times oversubscribed.

Bayer's "successful placement of these benchmark bonds" confirms its high standing on the capital market, said chief financial officer Werner Baumann, adding that the group has leveraged its strong position as an issuer.