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Siemens is aiming to make a monumental impact on the European corporate bond landscape, as Bloomberg reported on Thursday that the company is putting the wheels in motion for Europe’s largest corporate bond offering this year. This follows closely behind a recent credit rating upgrade and the potential sale of its Innomotics business.
The industrial conglomerate is now striving for a four-part bond deal valued at a minimum of €2 billion, which translates to about $2.1 billion, spread across maturities stretching up to 20 years, according to the report.
Siemens’ long-term rating received a boost earlier this week from S&P Global Ratings, which upgraded it to AA- from A+. The upgrade was attributed to the high-margin nature of Siemens’ businesses, leading to a structural improvement and an enhanced resilience in the company’s profitability and cash flow generation.
In the midst of this, reports have surfaced that lenders are diligently formulating proposals to offer a debt package of at least €1.2 billion for Innomotics, a company specializing in heavy-duty electric motors.
Though Siemens is poised to position itself at the zenith of Europe’s corporate bond market for the current year, its endeavor still appears overshadowed by colossal bond issuances in the U.S. market. Earlier this week, Bristol-Myers Squibb captured the attention of the financial world by successfully selling $13 billion of bonds across nine tranches. The overwhelming response saw orders surpassing $85 billion, with the primary goal of financing its acquisitions of Karuna Therapeutics and RayzeBio.
