Royal Philips has priced a €650 million green bond due 2034 under the European Green Bond Standard, marking the healthcare industry's first issuance under the new EU framework.
The fixed-rate notes were sold at 99.655% of face value with a 4% coupon, yielding 4.055% at settlement. The 7.8-year tranche attracted demand 2.7 times the issue size, according to market sources. The Amsterdam-based company plans to list the bonds on the Luxembourg Stock Exchange’s regulated market, with settlement and issuance scheduled for Thursday.
Proceeds will finance taxonomy-aligned economic activities as outlined in Philips’ European Green Bond Factsheet, supporting its 2030 Impact Ambition. The issuance is not expected to increase net debt, as gross debt will temporarily rise until the company repays a 2027 bond maturity. Philips reported 2025 sales of approximately €18 billion and employs around 63,700 people across operations in more than 100 countries.
Credit ratings remain unchanged, with Standard & Poor’s, Moody’s, and Fitch assigning BBB+ and Baa1 ratings with stable outlooks. The bond was issued under Philips’ European Medium Term Note program.
