Merck KGaA debut Euro Benchmark Bond launched

Darmstadt, Germany-headquartered Merck KGaA says it has successfully launched its debut Euro Benchmark Bond in the European debt capital market. The issue has a size of 500.0 million euros ($643.3 million) and a maturity of seven years. The bond pays a coupon of 3.75% and was issued at a price of 99.716%. This corresponds to a spread of 47 basis points over mid-swaps. The bond will be listed on the Luxembourg Stock Exchange.

Proceeds of the transaction will be used for general corporate purposes and the issue will replace expiring bilateral credit lines provided to date by banks. In addition, it will improve the maturity structure of finance commitments. At the same time, Merck used the current favorable market conditions to attract new investors, the firm said.