Solvay announced last night that it had successfully completed the placement of its inaugural bond issue, a step that the Belgian chemicals group describes as "important" following its demerger from Syensqo.

The four-year €750 million bond, maturing in 2028, and the 7.5-year €750 million bond, maturing in 2031, will carry coupons of 3.875% and 4.25% respectively.

In a press release, CFO Alexandre Blum points out that between 250 and 300 investors participated in each of the issues, resulting in a transaction that was almost six times oversubscribed.

"This key transaction strengthens Solvay's capital structure and gives the company the financial stability it needs to implement its strategy in this new phase of its history", he said.

From his point of view, this success is a testimony of institutional investors' support and confidence in Solvay's strategy.

The net proceeds of the bonds are to be used for general corporate purposes, starting with the refinancing of a €1.5 billion bridge loan that was put in place at the end of 2023 in connection with the demerger.

Both bonds will be rated 'BBB-' by S&P, which corresponds to Solvay's long-term credit rating

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