June 3, 2024

dsm-firmenich implements cross guarantee agreement to mitigate structural subordination

dsm-firmenich on May 31 announced that it has signed a cross guarantee agreement between DSM BV, Firmenich International SA and DSM-Firmenich AG, to mitigate structural subordination in the group.

The agreement allows the group to develop a centralised financing structure, in line with its commitment to maintain strong investment grade ratings and develop a pari-passu platform for existing and future senior unsecured notes.

The cross guarantee agreement includes downstream guarantees from top parent company DSM[1]Firmenich AG to its wholly owned subsidiaries DSM BV and Firmenich International SA.

In addition, there are also upstream guarantees from those subsidiaries to the parent company. The guarantees are irrevocable and unconditional and cover existing and future senior unsecured debt instruments across these entities, including the group's existing senior unsecured bonds.

- dsm-firmenich