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07-Sep-2016  Düsseldorf / Germany

Wide interest in Henkel bonds

Henkel successfully placed bonds with a value of 2.2 billion euros

Henkel has successfully placed bonds with a value of 2.2 billion euros. The proceeds will be used to refinance the short-term bank credit for the acquisition of The Sun Products Corporation. The acquisition valued at around 3.2 billion euros (3.6 billion US dollars) including debt, was closed on September 1, 2016. It will be financed by a combination of a 3 year bank loan of about 1.0 billion euros and the proceeds of the bonds.

In total, Henkel placed 4 fixed-rate tranches in three different currencies: a 500 million Euro bond with a maturity of 2 years, a coupon of 0% p.a. and a negative yield of -0.05% p.a. as well as a 700 million Euro bond with a maturity of 5 years and a coupon and a yield of each 0% p.a. Furthermore a 750 million US Dollar bond on the Eurodollar market with a maturity of 3 years and a coupon of 1.5% p.a. and a 300 million British Pound bond with a maturity of 6 years and a coupon of 0.875% p.a.

“The successful placement of the bonds reflects both Henkel's high credit quality and our excellent access to the capital markets,” commented Henkel CFO Carsten Knobel. “With the transaction we take advantage of the favorable environment in the corporate bond markets. It allows us to secure the required financing at attractive conditions.”

The placement of the bonds was significantly oversubscribed and attracted wide interest by international investors.

Joint active bookrunners were BNP, Deutsche Bank and JP Morgan. Henkel’s current long-term rating is A by Standard & Poor’s and A2 by Moody's, both with stable outlook.

This document contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements. This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities.

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