London — Covestro and Wanhua both ventured into the global capital markets at the end of last week.
On Friday 4 March, Covestro raised a loan of EUR 1.5bn in three lots. The firm has a EUR 500m loan with interest rate (coupon) 1% which will be repaid in 5.5 years; a second EUR 500m with a coupon of 1.75% maturing in 8 years and 6 months; the third EUR 500m loan will pay 0.6% more interest than the 3 month Euribor rate and matures in two years.
"Following our IPO several months ago, we are now also present on the international debt capital market to a broad group of investors," said Frank Lutz, cfo.
Meanwhile, in China, the following day, Wanhua raised a loan through short-term financing bonds. These will mature on 3 March 2017 and pay 2.85%. The company raised Yuan 300m ($46m). This is the first step in the company's plan to raise Yuan 50bn in ultra short-term bonds.
Currency Conversion: XE.com