Swiss specialty chemicals group Sika AG said on Monday it successfully placed its first hybrid bond issue, raising €1 billion through two €500 million tranches aimed at European institutional fixed-income investors.
The bonds were structured as fixed-rate, callable, subordinated debt and listed on Euronext Dublin’s regulated market. Citigroup acted as global coordinator, while BofA Securities, Citigroup and UBS Investment Bank served as active bookrunners.
The first tranche is a 30NC5.75 structure maturing in 2056, with a 4.375% annual coupon, a first call date of Feb. 26, 2032 and a first reset date of May 26, 2032. Priced at 99.397%, the bond was issued at a yield of 4.500%, according to the company. The second tranche is a 30NC8.75 structure maturing in 2059, with a 4.875% annual coupon, a first call date of Feb. 26, 2035 and a first reset date of May 26, 2035. Priced at 99.153%, this tranche was issued at a yield of 5.000%.
S&P Global Ratings has assigned a 50% equity credit to the hybrid instruments, supporting Sika’s A- issuer rating. The company said proceeds will be used for general corporate purposes, including potential acquisitions and refinancing of existing debt.
Sika, headquartered in Baar, Switzerland, operates globally in specialty chemicals for construction and industry, with subsidiaries in 103 countries, more than 400 production sites and 33,700 employees. In 2025, the group reported sales of CHF 11.2 billion.
