June 18, 2020

DSM issues US$1.1 billion long-term bonds to finance acquisition of Erber Group




Royal DSM has announced the successful launch of €1 billion (US$1.1 billion) bonds in two tranches: a €500 million (US$562.5 million) bond with an eight-year maturity due in 2028, at a coupon of 0.25%; and a  €500 million bond with a twelve-year maturity due in 2032, at a coupon of 0.625%.


The new bond issues take advantage of favorable market conditions and allow the company to lock in low interest rates to finance the recently announced acquisition of Erber Group.


The terms are laid down in the €5 billion (US$5.6 billion) Debt Issuance Program of Royal DSM, the final terms and the supplements thereto being available on the company's website.


The re-offer price for the eight-year bond tranche was 99.653%. Based on this price, the yield is 0.294%. The re-offer price for the twelve-year bond tranche was 99.128%. Based on this price, the yield is 0.701%. The bonds will shortly be listed on Euronext Amsterdam.