Umicore completes €591m sustainability-related private placement

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( — Umicore successfully completed the issuance of a sustainability-linked fixed-rate private debt placement in the United States for a total principal amount equivalent to EUR 591 million1. Placed with more than 15 institutional investors, the placement attracted interest from both investors who participated in the 2017 and 2019 placements and new investors.

The operation, the funds for which will be drawn down in January 2023, is made up of several tranches with maturities ranging from 5 to 12 years and corresponding to a weighted average maturity of more than 8 years.

This issue further links the Group’s financing to its sustainability performance. The interest rate of the bonds will be directly linked to Umicore’s progress towards the carbon neutrality objectives formulated in its “Let’s go for Zero” sustainability ambitions, launched in June 2021. As part of “Let’s go for Zero” , the Group is committed to achieving carbon neutrality by 2035, with intermediate targets to reduce its scope 1 and 2 greenhouse gas emissions by 20% in 2025 and 50% in 2030.

With the success of this private placement offering, Umicore significantly diversifies and extends its funding base and debt maturity on fixed rate terms. Proceeds from the offering will be used for general business purposes. This notably includes the financing of Umicore’s growth projects as part of its “2030-RISE” strategy in the areas of mobility transformation, the growing need for advanced materials and circularity.

Wannes Peferoen, CFO of Umicore, commented: “The success of this private placement issue in a volatile financial market environment demonstrates the strength of our relationships with institutional debt investors and provides strong validation of Umicore’s strategic plan. “2030-RISE” designed to accelerate value-creating growth.
This transaction will provide us with additional fixed rate, long-term financing at an attractive price and support the execution of our ambitious growth strategy. Furthermore, it highlights the growing awareness of the social and sustainable impact of financing decisions in a context of climate change and resource scarcity and demonstrates Umicore’s strong commitment to its sustainability ambitions “Let’s go for Zero” aiming to achieve carbon neutrality by 2035.”

This issue will complement the three existing private placements for a total amount of 1,080 million euros, the convertible bond of 500 million euros and the loan from the European Investment Bank of 125 million euros. In addition, Umicore has undrawn syndicated bank credit facilities totaling approximately 1 billion euros and significant uncommitted short-term financing instruments.


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