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First green bonds a complete success

At the end of May, BASF launched its first green bond. The company issued bonds with a value of €1 billion over a term of seven years, with the amount raised earmarked for the financing of sustainable products and projects. BASF already offers impressive solutions in this vital segment, and aims to further expand its expertise in this area.

Chemistry and sustainability may sound contradictory to some – but not to BASF, where both topics are inseparably linked. Therefore, the company is increasingly focussing on solutions based on renewable raw materials. With this approach, BASF contributes to overcoming the challenges of our time, as well as meeting the growing expectations of its customers and consumers. To enable even greater investments in this promising field in the future, BASF launched green corporate bonds valued at €1 billion at the end of May. The term is seven years, with an annual coupon of 0.25%.

Green financing strategy

BASF Chief Financial Officer Dr Hans-Ulrich Engel was delighted with the successful placement and emphasised: “The initial issue of a green bond now firmly anchors sustainability in BASF’s financing strategy as well.” To issue the green bonds, BASF created a “green finance framework” as a guideline for financial instruments which are designed with sustainability in mind. BASF aims to use the revenue from the green company bonds to develop sustainable solutions, such as products in which fossil materials are replaced by renewables.

Impressive results based on natural products

Impressive examples of these products are already on the market. This year, for instance, Plantacare® is celebrating the 25th anniversary of its market launch. The all-round surfactant is made of 100% natural raw materials and is used in shower gels, toothpaste and baby hygiene products as it is both mild and gentle to skin. In addition, Epotal® ECO 3675 is a biodegradable adhesive in high demand as a solution for packaging. Another sustainable solution is the water-based wood coating Acronal® EDGE 6338, which has an unparalleled solid content of 60%, ensuring high coverage and therefore significantly lower material consumption.

Biomass-balanced products in demand

Acronal® is also an example of what are known as BMB products – products created using the biomass balance method (BMB). At the start of the production process, renewable raw materials are added to these products, which are then attributed to the end product using a model for calculating the mass balance. Accordingly, the carbon footprint is smaller than for products manufactured using conventional methods. BASF already has large customers who are placing their trust in BMB products. This enables these customers to provide environmentally conscious end consumers with more sustainable solutions, all without having to perform their own research.

You can find more information on green finance at BASF at the company website.