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Solvay issues inaugural €1.5B dual tranche bond

March 30, 2024
Energy & Chemical Value Chain

Solvay SA said it has completed the placement of its inaugural bond transaction on March 27. This transaction represents another important milestone for the company after the partial demerger of its specialty businesses in December 2023, Solvay added.

The company’s CFO Alexandre Blum said that “this key transaction strengthens the capital structure of Solvay and gives the company the financial stability to execute its strategy in this new phase of its journey.”

The bond has two tranches — a 4-year, €750 million tranche maturing on April 3, 2028, and a 7.5-year, €750 million tranche maturing on Oct. 3, 2031 — with coupons of 3.875% and 4.250%, respectively, the company said.

The participation was “exceptional,” with more than 250 and 300 investors in the 4-year tranche and the 7.5-year tranche, respectively, Blum said. “This contributed to a transaction nearly 6 times oversubscribed, a clear testimony of the continuous support and confidence from institutional investors in Solvay’s vision and strategy,” Blum added.

Both bonds will be rated BBB- by S&P Global, matching Solvay’s long-term credit rating, the company said, adding that bond settlement is scheduled for April 3, with trading expected to begin on the Euro MTF market of the Luxembourg Stock Exchange around the same time.

The proceeds will be used for general corporate purposes, including the refinancing of the €1.5 billion bridge facility set up at the end of 2023 in relation to the partial demerger, the company said.

by Sotirios Frantzanas


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