Bayer raises 2 billion euros through hybrid bond issuance

Bayer has raised 2 billion euros through the issuance of hybrid bonds to increase its financial flexibility. This move brings the total value of the company’s outstanding hybrid bonds to 6.55 billion euros. The 30-year bonds are structured so that rating agencies recognize half of the amount as equity, which helps mitigate the impact on the company’s credit rating and debt load.

The capital raise comes as the pharmaceutical and agrochemical giant continues to manage high debt levels and significant legal costs in the United States. Bayer is facing ongoing litigation regarding its glyphosate-based weedkillers, though it previously reached a preliminary settlement valued at approximately 7.25 billion dollars.

This financing follows a 3 billion euro equity injection from investor Apollo for Bayer’s long-acting reversible contraceptive (LARC) business. The company has indicated that it intends to use credit lines and bond issuances to refinance debt and fund legal settlements rather than pursuing a traditional capital increase.