Südzucker issues EUR 700 million hybrid bond
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PRESS RELEASE
Mannheim, 21 May 2025
NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, SOUTH AFRICA OR JAPAN
Südzucker issues EUR 700 million hybrid bond
New issue of a hybrid bond with a non-call period of 5.25 years, combined with a tender offer for the existing hybrid bond of Südzucker
Südzucker AG, Europe's leading sugar producer, successfully issued a new hybrid bond worth EUR 700 million on 21 May 2025 through its wholly owned Dutch subsidiary Südzucker International Finance B.V. The issue was met with strong demand from investors. The combined order book, which peaked at around EUR 1.6 billion, demonstrates the market's great confidence in Südzucker AG's financial strength.
The new bond is one of the euro-denominated hybrid instruments that benefit from Moody's updated rating methodology. It has been assigned a rating of Ba1, which is only two notches below the company's issuer rating of Baa2.
The new hybrid bond was sold exclusively to institutional investors. It has no maturity date, includes an initial regular call option for the issuer after 5.25 years and a coupon of 5.95 percent until the first reset date. Südzucker intends to list the hybrid bond on the Luxembourg Stock Exchange.
The proceeds will be used for general corporate purposes, including the refinancing of the outstanding subordinated fixed-rate bond with a variable interest rate of EUR 700 million (ISIN: XS0222524372). A repurchase offer was launched in connection with the new issue on 19 May 2025 and will expire on 27 May 2025. Südzucker intends, in accordance with the terms of the outstanding bond, to terminate it with effect from 30 June 2025 and repay it at par on 30 June 2025.
BNP PARIBAS, Deutsche Bank and HSBC acted as joint global coordinators and active bookrunners for the new issue and as dealer managers for the buyback offer. Bank of America, ING and Rabobank acted as additional active bookrunners for the new issue.
Hybrid bonds are an integral part of Südzucker's financing strategy and support the company's conservative financing policy. They are structured in such a way that they are recognised as 50 percent equity by the rating agencies (Standard & Poor's and Moody's). The aim of the buyback offer and the issue of the hybrid bond is to modernise Südzucker's hybrid portfolio.
Contact
Südzucker AG
Maximilianstraße 10
68165 Mannheim, Germany
Investor Relations:
Nikolai Baltruschat
Phone: +49 621 421-240
[email protected]
Financial Press:
Dr Dominik Risser
Phone: +49 621 421-205
[email protected]
Südzucker issues EUR 700 million hybrid bond
Press release, 21 May 2025 - Not for distribution in the United States of America, Australia, Canada, South Africa or Japan. Please read the important notice at the end of the document carefully.
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