• €1 billion bond issuance was significantly oversubscribed, reflecting strong investor confidence in Philips’ financial stability and sustainability strategy.
• Proceeds will support 2026 debt repayment and fund green projects under Philips’ Sustainable Finance Framework.
• Competitive pricing achieved: 3.281% yield on 2030 notes and 4.050% yield on 2035 notes.

Royal Philips has successfully priced a €1 billion dual-tranche bond issuance under its European Medium Term Note (EMTN) program, reinforcing its capital structure while advancing its sustainability agenda.

The offering includes €500 million in fixed-rate notes due 2030 and another €500 million due 2035. The notes were heavily oversubscribed—by more than 3 times for the 5-year tranche and over 4 times for the 10-year—highlighting robust institutional demand.

“The net proceeds will be used for general corporate purposes, the repayment of 2026 debt maturities, and to refinance or finance any Eligible Projects as defined in Philips’ Sustainable Finance Framework,” the company stated.

The 2030 notes were priced at 99.859% with a 3.250% coupon, yielding 3.281%. The 2035 notes were priced at 99.595% with a 4.000% coupon, yielding 4.050%.

RELATED ARTICLE: EBRD Issues Record €1 Billion Green Bond to Fund Sustainable Projects

Settlement and listing are expected on May 23, 2025, on the Luxembourg Stock Exchange’s regulated market.

Philips continues to emphasize maintaining a solid credit profile. The company is currently rated BBB+ by S&P and Fitch, and Baa1 by Moody’s, all with stable outlooks.

“Philips is committed to maintaining a strong investment grade credit rating,” the release added.

The issuance is restricted to professional investors. The notes will not be offered to retail investors in the EU or UK due to regulatory restrictions under the PRIIPs Regulation and UK PRIIPs Regulation, respectively.

Follow ESG News on LinkedIn