Covestro debut €1.5 billion bond issue

Overview:

• Specialist polymers and plastics company Covestro sold €1.5 billion in bonds in the company's debut bond issue.
• The notes, which were issued under a €5.5 billion programme, were sold in three tranches of €500 million each and listed on the Luxembourg Stock Exchange. 
• Two of the tranches were fixed interest bonds with coupons of 1% and 1.75%, which mature in five and a half years and eight years respectively. 
• The third tranche was a variable rate bond with a term of two years and a spread of 0.6% over the three-month Euribor rate.
• Formerly Bayer Material Science, Covestro was spun off by the Leverkusen based group in 2015, going public later in the year with a €1.5 billion IPO in Frankfurt .
• Covestro intends to use the proceeds of the bonds to repay some of the €2.1 billion debt it owes Bayer. 

Ben Naylor - Regional editor