Funding boost for Sibelco provides extra flexibility

Company successfully completes placement of six-year bond for an amount of €500 million

SIBELCO have successfully completed the placement of a six-year bond for an amount of €500 million.

The bonds have been placed with qualified institutional investors and were nearly six times oversubscribed, allowing for an issuance amount of €500 million. The pricing of the annual coupon was fixed at 5.125% with an issue price of 99.637%. 

Sibelco say the financing will provide additional diversity to their funding portfolio and that the proceeds of the bond issue will be used for the group’s general corporate purposes, including the financing of growth projects and of potential acquisitions, as well as the refinancing of existing indebtedness.

The bonds were issued today (17 July 2024), subject to customary closing conditions, and will be listed and admitted to trading on Euronext Growth (Euronext Brussels).

Sibelco’s chief executive officer, Hilmar Rode, commented: ‘Sibelco’s funding position is very healthy, and this additional source of financing provides us with extra flexibility. Growth is a key element of our strategy, and the funds will be used to consolidate our financing requirements and add an additional liquidity point.

‘We appreciate the banks’ and investors’ trust in Sibelco and the market’s view of Sibelco as a solid investment-grade company.’