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Jun 1, 2017  Düsseldorf / Germany

Strong interest in Henkel bond

Henkel places 600 million Eurodollar bond

Henkel has successfully placed a 600 million US dollar bond in the Eurodollar market. The bond has a term of 3 years and matures on June 12, 2020. The bond pays a coupon of 2.0 percent. The settlement is expected to take place on June 12, 2017.

The placement of the bond was significantly oversubscribed and attracted wide interest by international investors. The proceeds from the issue will be used to finance the acquisitions Henkel recently announced. This year, Henkel signed agreements to acquire the global Darex Packaging Technologies business from GCP Applied Technologies, Mexican hair care company Nattura Laboratorios as well as the Sonderhoff-Holding GmbH. In addition to the bond, cash and the existing commercial paper programs will be used for financing the transactions.

“The successful placement of the bond reflects our excellent access to the capital markets,” said Henkel CFO Carsten Knobel. „Following the successful bonds issue in the previous year, we once again managed to secure attractive financing conditions. As the payments have to be settled in US dollars, using the Eurodollar market offered significant financing cost benefits compared to an issue in the Euro market.”

Joint active bookrunners were Bank of America Merrill Lynch, Deutsche Bank, Citibank and HSBC. Henkel’s current long-term rating is A by Standard & Poor’s and A2 by Moody's, both with stable outlook.