Ludwigshafen, Germany — BASF recently raised EUR 2bn by issuing two bonds. It promises to repay the bonds at the end of their terms.
The first, valued at EUR 1 bn, will run for three years, and will pay investors 0.101% interest. The second, which is linked to the company's green financing initiatives, will pay investors 0.25%, and it will run for seven years.
Hans-Ulrich Engel, BASF’s CFO, said the second loan was a green bond. '[It] now firmly anchors sustainability in BASF's financing strategy,' he said.
A BASF spokesman confirmed that there are no specific PU projects for which the money is being publicly earmarked at the moment. However, he added that polyurethanes play a large role in reducing energy use, and contribute to green goals.