Health technology firm Royal Philips has successfully priced a €650 million offering of fixed-rate notes due 2034 under its European Medium Term Note programme, establishing the healthcare sector’s first issuance under the European Green Bond Standard.
The 7.8-year tranche achieved an oversubscription rate of 2.7 times. Priced at 99.655 per cent with a coupon of 4.0 per cent, the notes deliver a yield to maturity of 4.055 per cent. Settlement and official issue are scheduled for 28 August 2026, with listing and trading applications submitted to the regulated market of the Luxembourg Stock Exchange.
Capital raised equivalent to the gross proceeds will fund taxonomy-aligned economic activities detailed in the company’s European Green Bond Factsheet, supporting operational milestones under its 2030 Impact Ambition. Financial management confirmed the issuance will not increase net debt, though gross debt will experience a temporary rise pending the scheduled repayment of an existing bond maturity in May 2027.
The transaction maintains the firm’s balance sheet objectives as it retains investment-grade credit ratings from major credit rating agencies, including BBB+ from Standard & Poor’s, Baa1 from Moody’s, and BBB+ from Fitch, all with stable outlooks.
