Bayer refinances 1.75 billion euro hybrid bond

Leverkusen, November 7, 2019 - Bayer AG on Thursday successfully placed hybrid capital with a total volume of 1.75 billion euros. The issue comprises two tranches and exclusively targets institutional investors. It was more than five times oversubscribed. Bayer intends to list the hybrid bonds on the Luxembourg Stock Exchange.

Both tranches have a final maturity of 60 years. The first tranche in the amount of 1 billion euros with a non-call period of 5.5 years pays a coupon of 2.375 percent. The second tranche in the amount of 750 million euros with a non-call period of 8 years pays a coupon of 3.125 percent.

The proceeds will be used for general corporate purposes including financing a tender offer for Bayer’s existing 1.75 billion euro 3 percent hybrid bond which is callable on July 1, 2020 (ISIN DE000A11QR65). The tender offer was launched on November 6, 2019.

Hybrids are a permanent feature of Bayer’s financing strategy and support its conservative financial policy. The new hybrid bonds rank pari-passu with Bayer’s outstanding hybrid bonds and are subordinated to all other financial liabilities. They are structured to receive equity credit of 50 percent from the rating agencies (Standard & Poor’s, Moody’s and Fitch). The purpose of the tender offer and issuance of hybrid capital is to proactively manage Bayer’s hybrid portfolio and is expected to be broadly equity credit neutral for Bayer.

"Our new hybrid bonds were very well received by the market," said Bayer CFO Wolfgang Nickl. "The high level of oversubscription and strong investor demand confirms the confidence that Bayer enjoys in the capital markets."

BNP Paribas, BofA Securities and MUFG structured and placed the transaction as active bookrunners.

About Bayer
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to benefit people by supporting efforts to overcome the major challenges presented by a growing and aging global population. At the same time, the Group aims to increase its earning power and create value through innovation and growth. Bayer is committed to the principles of sustainable development, and the Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2018, the Group employed around 117,000 people and had sales of 39.6 billion euros. Capital expenditures amounted to 2.6 billion euros, R&D expenses to 5.2 billion euros. For more information, go to www.bayer.com.

Forward-Looking Statements
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.


Important notice
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, any securities. There will be no public offer of the securities in any jurisdiction. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. An investment decision regarding the securities referred to herein should only be made on the basis of the securities prospectus.
This announcement is an advertisement and does not, under any circumstances, constitute a public offering or an invitation to the public in connection with any offer within the meaning of Regulation (EU) 2017/1129. The final prospectus, when published, will be available on the website of the Luxembourg Stock Exchange (www.bourse.lu.)
The securities referred to herein will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State security laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act or to, or for the benefit of, U.S. persons.
The tender offer referenced herein is not being made, directly or indirectly, in or into the United States by use of the mails or by any means or instrumentality (including, without limitation, e-mail, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or of any facility of a national securities exchange of the United States and the tender offer cannot be accepted by any such use, means, instrumentality or facility or from within the United States.