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LANXESS places bond in Hong Kong

  • First German chemicals company with off-shore RMB bond

Not for publication or distribution, directly or indirectly, in or into the United States of America, Australia, Canada or Japan

Leverkusen, Hong Kong – German specialty chemicals company LANXESS has successfully placed a Chinese offshore Renminbi (CNH) denominated bond in Hong Kong as part of its existing Debt Issuance Program. LANXESS is the first German chemicals company to issue a RMB denominated bond.

The issue has a volume of RMB 500 million (roughly EUR 60 million) and a three-year term. The bond has a 3.95 percent per year coupon and will be traded as of February 16, 2012. The bond was placed with institutional investors in Asia and Europe.

“The successful placement of the ‘Dim Sum’ bond reflects the confidence investors have in LANXESS’ solid financial position,” said LANXESS’ chief financial officer, Bernhard Duettmann. “The bond also underlines the growing importance of our commitment to the Chinese market.”

LANXESS has received approval from the central bank of China to repatriate the funds from the bond issue into mainland China and they will be used to finance the company’s operating business and growth strategy there. At the same time, it allows LANXESS to further diversify its funding sources at attractive interest rate levels.
Greater China is a cornerstone of LANXESS’ global growth strategy. In 2010, the company achieved sales in Greater China (mainland China, Hong Kong, Taiwan and Macao) of about EUR 800 million, and is targeting more than EUR one billion sales there in 2012. All of LANXESS’ 13 business units are represented at 10 sites in Greater China, with roughly 900 employees in total. The most recent investment projects include the construction of a plant for leather chemicals in Changzhou, the expansion of high-tech plastics production in Wuxi and the launch of a new joint venture for the production and marketing of nitrile rubber in Nantong.

Joint lead managers of the issue are Standard Chartered Bank, Deutsche Bank and Bank of America Merrill Lynch. LANXESS is rated BBB (stable outlook) by Standard & Poor’s and Baa2 (stable outlook) by Moody’s.

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for or otherwise acquire any securities. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933 and are subject to U.S. tax law requirements. Accordingly, these securities may not be offered, sold or delivered in the United States or to U.S. persons.

Forward-Looking Statements

This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.


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