WEDNESDAY, 20/09/2023 - Scope Ratings GmbH

Bayer is in the market with new hybrid bond

Bayer AG is in the market with a dual-tranche euro-denominated hybrid bond, having mandated lead underwriters to arrange investor calls yesterday.

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Tranche A is a benchmark-sized 60-year due 25 September 2083 with a call at 5.25 years. Initial price thoughts are 7.375% area, according to Bond Radar. There is a 25bp coupon step-up from December 2033 (first step-up date) and 100bp (an additional 75bp) from December 2048 (second step-up date).

Tranche B is a benchmark 60-year due 25 September 2083 with a call at 8.25 years. Initial price thoughts are 7.875% area. There is a 25bp step up from December 2036 (first step-up date) and 100bp (an additional 75bp) from December 2051 (second step-up date).

Proceeds are for general corporate purposes, including the partial refinancing of the existing EUR 1.5bn Subordinated Resettable Fixed Rate Notes due 2074 (callable 1 July 2024); and EUR 1bn Subordinated Resettable Fixed Rate Notes due 2079 (callable 12 February 2025).