NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SOUTH AFRICA OR SINGAPORE OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. Any announcements regarding securities offerings, or references to securities offerings, that are contained on these pages do not constitute an offering of those securities. Any offering of securities will be contained in a prospectus that contains detailed information about the issuer and the offered securities, including a discussion of risks, the issuer's business and relevant financial  information. 

LANXESS places EUR 600 million sustainability-linked benchmark bond

•	Interest rate of bond linked to achievement of climate target 
•	LANXESS aims to reduce CO2e emissions* by 600,000 metric tons by 2025 compared to 2018
•	Company aims to achieve climate neutrality by 2040

Cologne, November 23, 2021 – Specialty chemicals company LANXESS underpins its commitment in the area of sustainable finance and successfully placed its first sustainability-linked bond on the European capital market today. The benchmark bond with a volume of EUR 600 million has a tenor of eight years and a coupon of 0.625 percent. The interest rates of the bond are linked to the achievement of LANXESS’ climate target. The company aims to reduce its CO2e emissions* by 600,000 metric tons to 2.6 million metric tons by 2025 compared to the base year 2018. If LANXESS does not achieve the target, the interest rate will increase by 0.250 percentage points per annum for subsequent interest periods until maturity. 

LANXESS will use the funds to finance the acquisition of the Microbial Control business from U.S.-based group IFF, which was announced in August. “With this bond, we have already fully completed the financing of the planned acquisition of IFF Microbial Control. We are pleased to see the positive response from the capital market,” said LANXESS Chief Financial Officer Michael Pontzen. “With our first sustainability-linked bond, we are underlining our commitment to sustainability also in our financing activities.” The company aims to be climate neutral by 2040.  

For the issuance of sustainability-linked bonds, LANXESS has established a framework which aims to provide the necessary transparency to investors. The framework aligns with the “Sustainability Linked Bonds Principles” of the “International Capital Market Association” (ICMA). ISS ESG, a rating agency specializing in sustainability, has assessed LANXESS’ framework and considers the climate targets as relevant and ambitious. More information at Sustainable Financing (lanxess.com).

LANXESS has been active in sustainable financing already at an early stage. In December 2019, the specialty chemicals company had agreed on a sustainable revolving credit facility of EUR 1 billion with interest rates linked to the successful reduction of its CO2e  emissions (Scope 1) and the increase in the proportion of women on the top three management levels.

The new bond is listed on the Luxembourg Stock Exchange in denominations of EUR 100,000. LANXESS’ issuer ratings are currently Baa2 (Moody's), BBB (Standard & Poor's) and BBB+ (Scope). A bank consortium consisting of Citi, Deutsche Bank and DZ Bank was mandated to place the bond. In addition, Deutsche Bank acted as the sustainability-linked structuring advisor. 

*Scope1 and scope 2 greenhouse gas emissions

LANXESS is a leading specialty chemicals company with sales of EUR 6.1 billion in 2020. The company currently has about 14,900 employees in 33 countries. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.

Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

Information for editors:
All LANXESS news releases and their accompanying photos can be found at http://press.lanxess.com. Recent photos of the Board of Management and other LANXESS image material are available at http://photos.lanxess.com.

You can find further information concerning LANXESS chemistry in our digital magazine “Inside LANXESS” at http://inside.lanxess.com.

Follow us on Twitter, Facebook, LinkedIn and YouTube:
http://www.twitter.com/LANXESS
http://www.facebook.com/LANXESS
http://www.linkedin.com/company/lanxess
http://www.youtube.com/lanxess