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[July 2003]
Long-Term Sources of Finance Secured by Bayer
Bayer AG (Leverkusen, Germany) has just announced that it has arranged a credit facility of €3.5 billion with an international consortium of more than 30 banks. The money - if needed - would be used for general corporate financing purposes. Appointed as lead managers are Bank of America Securities Ltd, Citigroup, CrIdit Agricole, Indosuez, Deutsche Bank AG and HSBC Bank PLC, which have also involved further selected partner banks of Bayer AG. The syndication was substantially oversubscribed.
This credit facility replaces the commercial paper backstop facility, also of €3.5 billion, agreed upon a year ago, under which Bayer did not draw. The new transaction comprises two tranches of equal volume with maturities of 12 months and five years respectively.
Bayer has also signed an asset-backed securities transaction of up to €600 million, arranged by ABN AMRO, on the revolving sale of trade receivables. This transaction provides Bayer with additional competitive financing via the highly liquid A1+/P1 commercial paper market.
Both agreements secure long-term sources of finance for the Bayer Group.
ENDS