Umicore secures € 499 million in sustainability-linked private debt
placement
Umicore secures € 499 million in
sustainability-linked private debt placement
Umicore has successfully completed the issue of
a fixed-rate, sustainability-linked US Private Placement Notes for
a total amount of € 499 million equivalent1 which was
priced end of March 2024. The Notes, placed with 17 institutional
investors in Europe and North America, attracted strong interest
both from investors who participated in Umicore’s previous
placements, as well as new investors.
The transaction is composed of several tranches
with maturities ranging from 7 to 12 years corresponding to a
weighted average maturity of more than nine years. The funds of
this issue will be drawn upon in July 2024.
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 decarbonization
formulated in its “Let’s go for Zero” sustainability ambitions: net
zero scope 1 and 2 greenhouse gas emissions in 2035, with
intermediate targets to reduce its Scope 1 and 2 emissions by 20%
in 2025 and by 50% in 2030, and to reduce the intensity of
purchased materials (scope 3, category 1) by 42% by 2030. The
Science Based Targets initiative (SBTi) validated Umicore’s Scope 1
and 2 2030 target ambition to be in line with a 1.5°C trajectory
and the Scope 3 2030 target to be in line with a well below 2°C
trajectory.
Through the successful completion of this
private placement offering, Umicore diversifies and extends its
funding base and the maturity of its debt at attractive fixed rate
conditions. The proceeds of the offering will be used for
refinancing and general corporate purposes. This includes in
particular the funding of Umicore’s projects under its 2030 RISE
strategy based on powerful megatrends such as the rapid
acceleration towards cleaner transport, the growing need for
high-tech advanced materials and the need for circularity through
recycling. All areas for which Umicore intends to deliver
profitable growth and value creation.
Wannes Peferoen, CFO of Umicore,
commented: “This successful private debt placement, for the
fourth consecutive time, will provide Umicore with additional
attractively priced, fixed-rate, long-term financing and will
support the execution of our 2030 RISE growth strategy. The
transaction was substantially oversubscribed, a clear sign of the
strong interest from, and the strength of our relationships
with, the institutional debt investors. Furthermore, it confirms
the 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.”
Together with the new € 350 million loan from
the European Investment Bank signed in February 2024, this € 499
million issue will complement the existing portfolio of long-term
debt instruments, including Convertible Bonds, Schuldschein,
previous USPPs and EIB loans. In addition to its debt portfolio,
Umicore has access to € 1.1 billion of undrawn Syndicated Bank
Credit Facilities and substantial additional uncommitted short term
financing instruments, including commercial paper programs.
For more
information
Investor Relations
Caroline Kerremans |
+32 2 227 72 21 |
caroline.kerremans@umicore.com |
Benoît Mathieu |
+32 2 227 73 72 |
benoit.mathieu@umicore.com |
Adrien Raicher |
+32 2 227 74 34 |
adrien.raicher@umicore.com |
Media Relations
Marjolein Scheers |
+32 2 227 71 47 |
marjolein.scheers@umicore.com |
Caroline Jacobs |
+32 2 227 71 29 |
caroline.jacobs@eu.umicore.com |
Umicore profile
Umicore is a circular materials technology
company that focuses on application areas where its expertise in
materials science, chemistry and metallurgy makes a real
difference. Its activities are organized into four Business Groups:
Battery Materials, Catalysis, Recycling and Specialty Materials.
Each Business Group is divided into market-focused business units
offering materials and solutions at the cutting edge of new
technological developments and essential to everyday life.
Umicore generates most of its revenues from and
dedicates most of its R&D efforts to clean mobility materials
and recycling. Umicore’s overriding goal of sustainable value
creation is based on an ambition to develop, produce and recycle
materials in a way that fulfills its mission: Materials for a
better life. Umicore’s industrial and
commercial operations as well as its R&D activities are spread
across the world to best serve its international customer base with
more than 11,500 employees. The Group generated revenues (excluding
metal) of € 3.9 billion (turnover of € 18.3 billion) in
2023.
About Umicore’s “Let’s go for Zero”
ambitions
At Umicore, we see it as our corporate
responsibility, or better yet, our mission to use our technological
know-how, scientific expertise and corporate reach to be an
industry leader in sustainability. We are determined to rethink
processes, transform and focus our efforts on net zero GHG
emissions, zero regrets and endless possibilities.For more
information on our “Let’s go for Zero” ambitions: click here.
Forward looking statements and
disclaimer
THIS COMMUNICATION IS NOT INTENDED FOR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES
OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION IS PROHIBITED
UNDER APPLICABLE LAW.
The issue, exercise or sale of securities in the
offering mentioned in this press release are subject to specific
legal or regulatory restrictions in certain jurisdictions. The
information contained herein shall not constitute or form part of
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the securities referred to herein, in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. Umicore (“Umicore”) assumes no responsibility in the
event there is a violation by any person of such restrictions.
This press release does not constitute an offer
to sell or a solicitation of an offer to purchase any securities in
the United States or any other jurisdiction. The securities
referred to herein have not been, and will not be, registered under
the Securities Act of 1933, as amended, and may not be offered,
exercised or sold in the United States or to, or for the account or
benefit of, U.S. persons, except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of
the Securities Act of 1933. There is no intention to register any
portion of the offering in the United States or to conduct a public
offering of securities in the United States.
This press release may only be communicated, or
caused to be communicated, to persons in the United Kingdom in
circumstances where the provisions of Section 21 of the Financial
Services and Markets Act 2000, as amended (the “Financial Services
and Markets Act”) do not apply to Umicore and is directed solely at
persons in the United Kingdom who (i) have professional experience
in matters relating to investments, such persons falling within the
definition of “investment professionals” in Article 19(5) of the
Financial Services and Markets Act (Financial Promotion) Order
2005, as amended (the “Order”) or (ii) are persons falling within
Article 49(2)(a) to (d) of the Order or other persons to whom it
may lawfully be communicated (all such persons together being
referred to as “relevant persons”). This communication is directed
only to relevant persons and must not be acted on or relied on by
persons who are not relevant persons.
The securities referred to in this press release
are not intended to be offered, sold or otherwise made available
to, and should not be offered, sold or otherwise made available to,
any retail investor in the European Economic Area (“EEA”). For
these purposes, a retail investor means a person who is one (or
more) of: (i) a retail client as defined in point (11) of Article
4(1) of Directive 2014/65/EU, as amended (“MiFID II”) or (ii) a
customer within the meaning of Directive (EU) 2016/97, as amended,
where that customer would not qualify as a professional client as
defined in point (10) of Article 4(1) of MiFID II or (iii) not a
qualified investor as defined in Regulation 2017/1129, as amended
(the “Prospectus Regulation”). Consequently, no key information
document required by Regulation (EU) No 1286/2014, as amended (the
“PRIIPs Regulation”) for offering or selling the securities or
otherwise make them available to a retail investor in the EEA has
been prepared and, therefore, offering or selling the securities or
otherwise making them available to any retail investor in the EEA
may be unlawful under the PRIIPs Regulation.
The securities referred to herein are not
intended to be offered, sold or otherwise made available to, and
should not be offered, sold or otherwise made available to, any
retail investor in the United Kingdom (“UK”). For these purposes, a
retail investor means a person who is one (or more) of: (i) a
retail client as defined in point (8) of Article 2 of Regulation
(EU) No 2017/565 as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018 (“EUWA”) or (ii) a customer
within the meaning of the provisions of the Financial Services and
Markets Act and any rules or regulations made under the Financial
Services and Markets Act to implement Directive (EU) 2016/97, where
that customer would not qualify as a professional client as defined
in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it
forms part of domestic law by virtue of the EUWA or (iii) not a
qualified investor as defined in Regulation (EU) 2017/1129 as it
forms part of domestic law by virtue of the EUWA. Consequently, no
key information document required by Regulation (EU) No 1286/2014
as it forms part of domestic law by virtue of the EUWA (the “UK
PRIIPs Regulation”) for offering or selling the securities or
otherwise making them available to retail investors in the UK has
been prepared and, therefore, offering or selling the securities or
otherwise making them available to any retail investor in the UK
may be unlawful under the UK PRIIPs Regulation.
The securities referred to herein are also not
intended to be offered, sold or otherwise made available, and
should not be offered, sold or otherwise made available, in Belgium
to consumers (“consumenten/consommateurs”) within the meaning of
the Belgian Code of Economic Law (“Wetboek van economisch
recht/Code de droit économique”), as amended.
This document contains forward-looking
information that involves risks and uncertainties, including
statements about Umicore’s plans, objectives, expectations and
intentions. Readers are cautioned that forward-looking statements
include known and unknown risks and are subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond the control of Umicore. Should one or more
of these risks, uncertainties or contingencies materialize, or
should any underlying assumptions prove incorrect, actual results
could vary materially from those anticipated, expected, estimated
or projected. As a result, neither Umicore nor any other person
assumes any responsibility for the accuracy of these
forward-looking statements.
This press release does not constitute a
prospectus nor an advertisement within the meaning of the
Prospectus Regulation.
1 Total EUR equivalent of all USD and EUR
tranches based on FX-rate of 1.08 USD per EUR at pricing.