Evonik Industries has successfully issued a green hybrid bond with a nominal volume of €500 million and a coupon of 4.25 per cent. The transaction, which marks the fourth consecutive green bond issuance of Evonik already, further underscores the company’s commitment to sustainable finance and a resilient capital structure.

The hybrid bond, with a formal lifetime of 30 years and a first redemption right in 2031, reflects Evonik’s strategic decision to retain hybrid capital as a permanent element of its financing structure. The issuance combined with a tender offer enables the early refinancing of the existing green hybrid bond with a first redemption right in 2026.

The issuance is aligned with Evonik’s Green Finance Framework, last updated in 2023, which is based on the ICMA Green Bond Principles. The framework has been externally verified through a Second Party Opinion by ISS, also issued in 2023, confirming its robustness and credibility in supporting sustainable investments.

“This transaction demonstrates our continued commitment to maintaining a solid investment grade rating and embedding sustainability into every aspect of our activities - including our financing strategy,” said Maike Schuh, Chief Financial Officer of Evonik.

Proceeds will be primarily used to finance Next Generation Solutions and Next Generation Technologies.

Evonik plans to further increase the proportion of sales it generates from Next Generation Solutions by 2030 to 50 percent, from 45 percent in 2024.

At the same time, Evonik will further reduce its own ecological footprint. To this end, the company continuously invests in its processes along the entire value chain through its Next Generation Technologies resulting in projects like the climate-neutral production of alkoxides in Singapore.

The hybrid bond was significantly oversubscribed, attracting strong demand from institutional investors with a focus on sustainability.

BofA Securities acted as hybrid structuring agent and global coordinator. Barclays and ING served as global coordinators, with Commerzbank, Deutsche Bank, DZ Bank and LBBW as additional joint bookrunners.