OMV Aktiengesellschaft said on Tuesday it planned to issue a new bond of up to 1.5 billion euros to partly fund its purchase of additional stake in Borealis.

 

OMV had agreed to buy a 39% stake in plastics maker Borealis for $4.7 billion from its key investor Mubadala before the coronavirus crisis.

 

The purchase, which lifts OMV’s stake in Borealis to 75%, aims to strengthen its position in the industry and in the Middle East.

 

The company said it intended to issue the new bond within the next 12 months.

 

“The potential new hybrid bond shall have no maturity date and may be redeemed by OMV on certain dates and under certain conditions. Details of the potential issue, such as the total nominal value, the issue price and the coupon as well as further terms, would be determined at a later stage based on given market conditions, said the company.