Royal Philips, a global leader in health technology, has announced the successful pricing of its offering of EUR 650 million fixed rate notes due 2034 (the ‘Notes’) under its European Medium Term Note (EMTN) program. The Notes are the healthcare industry’s first EU Green Bond under the new European Green Bond Standard.
This issuance is not expected to result into an increase of Net Debt. Gross Debt will be temporarily increased until repayment of the 2027 bond maturity in May 2027.
The issue price for the Notes due 2034 is 99.655% with a Coupon of 4.0%, resulting in a yield of 4.055%. The 7.8 year tranche was oversubscribed by 2.7 times.
An amount equivalent to the gross proceeds will be used to finance taxonomy-aligned economic activities as referred to in Philips European Green Bond Factsheet, supporting Philips in delivering on its 2030 Impact Ambition.
Settlement and issue of the Notes is scheduled for August 28, 2026. Application has been made for the Notes to be listed on the Official List of the Luxembourg Stock Exchange and to be traded on the regulated market of the Luxembourg Stock Exchange.
Philips is committed to maintaining a strong investment grade credit rating. Currently, the company has a BBB+ rating by Standard & Poor’s (stable outlook), a Baa1 rating by Moody’s (stable outlook) and a BBB+ rating by Fitch (stable outlook).Â
