Sandoz to Strengthen Financial Position with CHF 550 Million Bonds and Credit Extension

Sandoz Group AG announced the issuance of CHF 550 million in CHF-denominated bonds. This issuance includes a CHF 275 million bond with a 1.1875% coupon maturing in six years, and another CHF 275 million bond with a 1.55% coupon maturing in ten years. The proceeds will be used for general corporate purposes, such as refinancing mature debts. Additionally, Sandoz has extended its USD 2 billion revolving credit facility (RCF) by one year, now maturing in March 2031. These actions are part of Sandoz's strategy to strengthen its balance sheet and maintain low financing costs.

Sandoz CFO Remco Steenbergen stated that these moves would provide significant financial flexibility. The company's annual interest rate on gross debt is expected to stay below 4%, and average debt-maturity is on track for six to seven years. Sandoz remains committed to its investment-grade rating, holding Baa2 from Moody’s and BBB from S&P, both with stable outlooks.