BASF : issues €2.0 billion in corporate bonds

• Initial placement of a green corporate bond to finance sustainable products and projects
• Attractive conditions thanks to very solid financial structure and leading sustainability position

On May 28, 2020, BASF successfully placed bonds with a total volume of €2.0 billion on the capital market. The first tranche has an issue volume of €1.0 billion, a term of 3 years and an annual coupon of 0.101% and will be used for general corporate financing purposes. With the second tranche, BASF issued its first green bond. This has a term of 7 years, a volume of €1.0 billion and an annual coupon of 0.25%; it serves to finance sustainable products and projects. BASF was able to secure attractive conditions thanks to its very solid financial structure and its leading sustainability position.

'We are pleased with the successful placement. The strong demand from investors for BASF bonds underscores the capital market's confidence in our solid financial policies and our sustainability-driven corporate strategy,' said Dr. Hans‑Ulrich Engel, BASF's Chief Financial Officer. 'The initial issue of a green bond now firmly anchors sustainability in BASF's financing strategy as well.'

BASF has established a framework for financing instruments based on sustainability criteria. This green finance framework enables BASF to finance sustainable products or projects offering a clear benefit to the environment and society with green bonds on the capital market. Such bonds fully align with BASF's corporate purpose, which reflects what the company stands for: We create chemistry for a sustainable future. BASF wants to contribute to a world that provides a viable future with enhanced quality of life for everyone. This is why the company offers products and solutions that are designed to make the best use of available resources and help to overcome new challenges.

The green finance framework and BASF's investor presentation can be found online at www.basf.com/green-finance.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 117,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €59 billion in 2019. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S. Further information at www.basf.com.

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