Bonds

In September 2016, Henkel issued fixed-rate bonds with a total volume of 2.2 billion euros for the purpose of financing a major portion of the acquisition of The Sun Products Corporation. The first tranches with volumes of 500 million euros and 750 million USD matured on September 13, 2018, respectively September 13, 2019. An additional EUR tranche matured on September 13, 2021.

In September 2019, Henkel placed bonds with a total volume of 750 million GBP in order to repay parts of the Group’s current commercial paper liabilities.

In January 2020, Henkel increased the existing 400 million GBP bond with an additional tranche of 100 million GBP. The proceeds from the issue were used in order to repay further parts of the commercial paper liabilities.

In April 2020, Henkel placed a 330 million CHF bond at the Swiss stock exchange. The proceeds from the issue were used for the repayment of the USD bond in June. Furthermore, the proceeds are used as a liquidity buffer during the COVID-19 crisis.

In July 2020, Henkel concluded a plastic waste reduction bond as the first company globally. The bond consists of two tranches of 70 million USD and 25 million EUR and has a maturity of five years.

The following table shows Henkel’s currently outstanding bonds:

Henkel usually issues bonds under standardized conditions in the framework of a Debt Issuance Program. This is explained in the Information Memorandum, dated August 27, 2021, which serves as prospectus in Germany and Luxembourg. Under this program, Henkel can issue up to 10 bn. euros in securities.

Sustainable Finance Framework

Henkel is further expanding its commitment to sustainable finance. The company has now defined a framework within which sustainable bonds can be placed in the future.

With this “Sustainable Finance Framework” Henkel creates a direct link between its sustainability strategy and its funding strategy. The framework enables the issuance of two types of bonds: sustainability-linked bonds and green bonds. For sustainability-linked bonds, financing costs are linked to the achievement of sustainability targets, while the proceeds from the issuance of green bonds are used for sustainable investments. The framework was reviewed by the independent ESG rating agency ISS ESG, which confirmed the environmental added value and the compliance of the framework with the Green Bond and Sustainability-Linked Bond Principles of the International Capital Market Association (ICMA).

Plastic waste reduction bond

Henkel takes another step in combining attractive corporate financing instruments with progress in sustainability: As the first company globally, Henkel concluded a plastic waste reduction bond. The proceeds from this bond, a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life, will be specifically allocated to projects and expenditures related to Henkel’s activities to reduce plastic waste. The bond has a total volume of 70 million US dollars and a maturity of five years.

The plastic waste reduction bond underlines Henkel’s commitment to foster a circular economy and reduce plastic waste and hence to Sustainable Finance. At the same time, it provides the opportunity for additional learnings from financial products which include sustainability features. In 2018, Henkel was the first company in Germany to conclude a syndicated ‘Sustainability linked Loan’, a credit facility linked to Henkel’s performance in three independent sustainability ratings.