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Sandoz's Inaugural Eurobond Issuance Raises EUR 2.0 Billion Successfully

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Sandoz Successfully Completes EUR 2.0 Billion Inaugural Eurobond Issuance

Sandoz, the global leader in generic and biosimilar medicines, has announced the successful issuance of three inaugural Eurobonds, raising a total of EUR 2.0 billion. The Eurobonds were priced earlier, with three tranches of EUR 700 million, EUR 700 million, and EUR 600 million. The bonds have maturities of 3.5, 6.5, and 10 years, carrying fixed coupons at 3.97%, 4.22%, and 4.50%, respectively.

Refinancing and Corporate Purposes

The proceeds from the Eurobond issuance will be used to repay a bridge loan facility and for general corporate purposes. This successful issuance marks Sandoz's entry into the EUR debt capital market and fulfills the company's immediate refinancing needs post spin-off.

Establishing a Strong Financing Profile

Colin Bond, Sandoz CFO, expressed that the inaugural bonds represent a significant milestone for Sandoz, establishing the company as a new issuer in the EUR bond market. The issuance creates a diversified and well-balanced financing profile in terms of currency and maturity. The bonds have tenors of 3.5, 6.5, and 10 years, maturing in 2027, 2030, and 2033, respectively. Sandoz aims to maintain a solid investment-grade rating and a net debt to core EBITDA ratio of 1.7 to 2.0. In conclusion, Sandoz's successful inaugural Eurobond issuance demonstrates the company's strong position in the market and its ability to access capital for strategic purposes. The funds raised will support Sandoz's refinancing needs and contribute to its ongoing growth and success in the global pharmaceutical industry.

The Impact of Sandoz's Successful Eurobond Issuance on New Businesses

Sandoz's successful issuance of three inaugural Eurobonds, raising a total of EUR 2.0 billion, offers noteworthy insights for new businesses. The global leader in generic and biosimilar medicines used this strategy to access capital, demonstrating a viable route for businesses to raise funds.

Considerations for Financing

For startups and new businesses, understanding different financing options is crucial. Sandoz's Eurobond issuance underlines the potential of the debt capital market as a source of funding. The raised capital is earmarked for repaying a bridge loan facility and for general corporate purposes, highlighting the importance of strategic financial planning in business growth.

Building a Robust Financial Profile

Sandoz's CFO, Colin Bond, emphasized that the bonds established the company as a new issuer in the EUR bond market, creating a diversified and well-balanced financing profile. For new businesses, this underscores the importance of establishing a strong financial profile, which can enhance credibility and attract potential investors.
Future Implications
In the long run, Sandoz's successful Eurobond issuance could influence how new businesses approach their financing strategies. By exploring various capital markets and maintaining a solid financial profile, new businesses can secure the necessary funds for strategic growth and success in their respective industries.
Story First Published at: https://financialpost.com/globe-newswire/sandoz-successfully-issues-eur-2-0-billion-inaugural-eurobonds
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