Umicore completes € 591 million sustainability linked private debt placement

Umicore has successfully completed the issue of a fixed-rate, sustainability linked US Private Placement Notes for a total principal amount of € 591 million equivalent¹. The Notes, which were placed with more than 15 institutional investors, attract interest both from investors who participated in Umicore’s 2017 and 2019 placements as well as new investors.  

The transaction, of which the funds will be drawn upon in January 2023, is composed of several tranches with maturities ranging from 5 to 12 years corresponding to a weighthed average maturity of more than eight years.   
 
This issue further ties the Group’s funding to its sustainability performance. The interest rate of the Notes will be directly linked to Umicore’s progress towards the carbon neutrality goals formulated in its “Let’s go for Zero” sustainability ambitions, launched in June 2021. In “Let’s go for Zero”, the Group commits to reaching carbon neutrality in 2035, with intermediate targets to reduce its Scope 1 & 2 greenhouse gas emissions by 20% in 2025 and by 50% in 2030.
 
Through the successful completion of this private placement offering, Umicore substantially diversifies and extends its funding basis and the maturity of its debt at fixed rate conditions. The proceeds of the offering will be used for general corporate purposes. This includes in particular the funding of Umicore’s growth projects under its “2030-RISE” strategy in the areas of mobility transformation, growing need for advanced materials and circularity.

“The success of this Private Placement issue, against a volatile financial market backdrop, demonstrates the strength of our relationships with institutional debt investors and provides a strong validation of Umicore’s “2030-RISE” strategic plan designed to accelerate value creative growth.

This transaction will provide us with additional attractively priced, fixed-rate, long-dated financing and will support the execution of our ambitious “2030-RISE” growth strategy. Furthermore, it underscores the growing awareness of the social and sustainability impact of financing decisions in a context of climate change and resource scarcity and demonstrates Umicore’s strong commitment to its “Let’s go for Zero” sustainability ambitions to achieve carbon neutrality by 2035.”

Wannes Peferoen, CFO of Umicore

The issue will complement the three existing private debt placements of a total amount of € 1,080 million, the Convertible Bond of € 500 million and the loan from the European Investment Bank of € 125 million. In addition, Umicore has committed currently undrawn Syndicated Bank Credit Facilities of a total amount of approximately € 1 billion and substantial additional uncommitted shorter-term funding instruments.

Forward looking statements and disclaimer

¹ Total EUR equivalent of all USD and EUR tranches based on FX-rate of 1.01 USD per EUR at pricing.