Chemical
Sika raises €1 billion in inaugural hybrid bond deal
The transaction comprises two €500 million tranches of fixed-rate
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By ICN Bureau | August 20, 2026
Sika has successfully raised €1 billion through its inaugural hybrid capital bond, strengthening its balance sheet while supporting future acquisitions and refinancing needs.
The transaction comprises two €500 million tranches of fixed-rate, resettable subordinated debt, placed with European institutional fixed-income investors. Citigroup acted as Global Coordinator, with BofA Securities, Citigroup and UBS Investment Bank serving as active bookrunners. The bonds will be listed on the regulated market of Euronext Dublin.
The first tranche is a €500 million 30NC5.75-year hybrid bond carrying a 4.375% annual coupon. It has a first call date of February 26, 2032, and a first reset date of May 26, 2032. The bond was issued at 99.397%, with a yield of 4.500%.
The second €500 million tranche is a 30NC8.75-year hybrid bond with a 4.875% annual coupon. Its first call date is February 26, 2035, followed by a first reset date of May 26, 2035. The bond was issued at 99.153%, with a yield of 5.000%.
The transaction is structured to receive 50% equity treatment from S&P, underscoring Sika’s focus on maintaining its A- issuer rating. The move comes after S&P revised Sika’s outlook from Negative to Stable on Monday, August 17, 2026.
Sika said the net proceeds will be used for general corporate purposes, including financing bolt-on acquisitions and refinancing existing financial indebtedness.
The €1 billion deal gives Sika additional financial flexibility as it continues to pursue acquisitions while managing its existing debt profile.
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