Corporate | Financial

— High oversubscription in challenging market environment generates issue volume of €750 million
— Pricing at lower end of the marketing range
— Promissory loan notes serve general corporate purposes and financing of strategic growth investments
— ESG-link endorses clear commitment to sustainable corporate and financing strategy

Today, Symrise AG successfully completed its first ESG (Environment, Social, Governance)-linked promissory loan notes transaction. The Group secured €750 million at highly favorable terms in a challenging market environment. The proceeds will be used for general corporate purposes and to finance strategic growth investments. The ESG-linked promissory loan notes represent the Group's second sustainable financing instrument. By directly linking the interest rate to the eco-efficiency of greenhouse gas emissions, Symrise combines economic progress and growth with sustainable and responsible actions.

"At Symrise, we firmly believe that economic and ecological as well as socially responsible actions go hand in hand. Following our sustainable revolving credit line of fiscal year 2021, we therefore decided to once again incorporate sustainability aspects into our latest refinancing. The loan’s strong response in the current market environment reflects our stable business model, our sustainability expertise and the trust in our proven strategy. We are pleased that we have attracted such a broad investor portfolio at very favorable terms with the first ESG-linked promissory loan notes," said Olaf Klinger, CFO of Symrise AG.

Symrise secured highly favorable pricing conditions at the lower end of the marketing range in a challenging capital market environment characterized by high inflation, volatile interest rates and great uncertainty due to the outbreak of war in the Russia/Ukraine conflict. The significantly oversubscribed order book resulted in an issue volume of €750 million. A total of around 100 investors participated in the transaction.

The transaction will be executed in five tranches with a maturity of four to ten years. Three tranches feature a fixed coupon, while two are subject to variable interest rates. The interest rate or margin depends on the eco-efficiency of the Symrise Group's greenhouse gas emissions. 

The issue was arranged by Landesbank Baden-Württemberg, Landesbank Hessen-Thüringen Girozentrale and UniCredit Bank AG.