Royal Philips, the Netherlands-based health technology company, has priced a €650 million green bond under the European Union’s new Green Bond Standard, marking the first such issuance in the healthcare sector under the framework.
The fixed-rate notes, due in 2034, were issued under Philips’ European Medium Term Note program with an issue price of 99.655%, a 4.0% coupon, and a resulting yield of 4.055%. The 7.8-year tranche attracted demand exceeding supply by 2.7 times, according to the company.
The proceeds will finance taxonomy-aligned economic activities as outlined in Philips’ European Green Bond Factsheet, supporting the company’s 2030 Impact Ambition. The issuance is not expected to increase net debt, though gross debt will temporarily rise until the repayment of Philips’ 2027 bond maturity in May 2027.
Philips, listed on the NYSE under ticker `PHG` and on the AEX as `PHIA`, reported sales of approximately €18 billion in 2025 and employs around 63,700 people across more than 100 countries. The company holds investment-grade credit ratings of BBB+ from Standard & Poor’s, Moody’s, and Fitch, each with stable outlooks.
The notes are scheduled for settlement and issuance on Thursday and have been applied for listing on the Official List of the Luxembourg Stock Exchange, with trading expected on its regulated market.
