Royal Philips has successfully priced a €1 billion ($ 1.1 billion) dual-tranche bond offering under its European Medium Term Note (EMTN) programme, the Dutch health technology company announced on Friday. The issuance comprises €500 million ($559 billion) in fixed-rate notes due 2030 and a further €500 million due 2035.
Proceeds from the issuance will be used for general corporate purposes, including the repayment of debt maturing in 2026, as well as to finance or refinance projects aligned with Philips’ Sustainable Finance Framework.
The 2030 notes were priced at 99.859% of nominal value with a 3.250% coupon, yielding 3.281%. The 2035 notes were priced at 99.595% with a 4.000% coupon, yielding 4.050%. Both tranches attracted strong investor interest, with the five-year and ten-year offerings oversubscribed by more than three and four times, respectively.
Settlement and listing of the notes on the regulated market of the Luxembourg Stock Exchange is expected on 23 May 2025. Philips, which holds investment-grade credit ratings of BBB+ from S&P and Fitch and Baa1 from Moody’s—all with stable outlooks—said the offering supports its commitment to maintaining a strong credit profile while advancing its sustainability objectives.
