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The spread on the EUR 750m six-year tranche was fixed at 105bp over mid-swaps, at guidance of MS+105bp area; initial price thoughts were MS+120bp area. Investor demand for the six-year was EUR 1.7bn, according to Bond Radar (www.bondradar.com). The spread on the 10-year fixed at MS+140bp, through MS+145bp guidance. IPTs on the longer tranche were MS+165bp area. Books for the 10-year closed at EUR 2.2bn.

“Scope’s rating on BASF reflects the company’s strong position and diversification in the global chemicals industry,” said Klaus Kobold, lead analyst for BASF. The company is ranked Top 3 in about 80% of its businesses, and the company has a large share of specialty chemicals in the portfolio. Only a very small share of sales are generated in Russia and Ukraine. “The rating is constrained by considerable exposure to cyclical end-markets such as transportation, while high raw and energy prices for a prolonged period could impair BASF’s financial results,” Kobold added.

When it comes to ESG, the biggest risk in the chemicals industry relates to the environment due to the heavy focus on production. The industry also faces litigation risk in terms of possible toxic effects on product users. “ESG considerations do not currently drive BASF’s credit rating. At this stage, we see no ESG factors that affect BASF specifically. We welcome the company’s sustainability goals, including carbon neutrality by 2050, an improved circular economy through R&D on recyclable polymers, among others,” Kobold said.

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