- Sika AG successfully placed an inaugural EUR 1 billion hybrid capital bond with European institutional investors.
- The bond is split into two EUR 500 million tranches and will be listed on Euronext Dublin.
- Sika said the proceeds will finance acquisitions and refinance debt, supporting its A- issuer rating from S&P.
BAAR, Switzerland — Sika AG today successfully placed an inaugural hybrid capital bond totaling EUR 1 billion.
Sika AG said in an emailed press release today that the bond was split into two EUR 500 million tranches. The placement targeted the European institutional fixed income investor base.
Bond Details
The first tranche is a EUR 500 million 30NC5.75-year hybrid bond. It carries a coupon of 4.375% per annum. The bond was issued at 99.397% with a yield of 4.500%. Its first call date is February 26, 2032, and the first reset date is May 26, 2032.
The second tranche is a EUR 500 million 30NC8.75-year hybrid bond. This tranche has a coupon of 4.875% per annum. It was issued at 99.153% with a yield of 5.000%. Its first call date is February 26, 2035, and the first reset date is May 26, 2035.
Citigroup acted as Global Coordinator for the transaction. BofA Securities, Citigroup, and UBS Investment Bank served as active bookrunners. The hybrid bonds will be listed on the regulated market of Euronext Dublin.
Purpose of Funds
Sika said the net proceeds from the transaction will be used for general corporate purposes. These include financing bolt-on acquisitions and refinancing existing financial indebtedness.
Rating Impact
The transaction is structured to receive 50% equity treatment at S&P. Sika stated this demonstrates its commitment to the A- issuer rating by S&P. S&P revised Sika’s outlook from Negative to Stable on August 17, 2026.