21. Financing and Financial Debt

The €5.0 billion Debt Issuance Program launched in the first quarter of 2016 is a key form of external financing. Of the euro bonds issued in March 2016, the final tranche outstanding with a volume of €500 million was repaid as scheduled in fiscal 2024. The fixed-rate euro bonds issued in 2020 with a total volume of €1.0 billion will mature in February 2026 (a coupon of 0.875% and a volume of €500 million) and in June 2030 (a coupon of 1.375% and a volume of €500 million).

In addition, Covestro published a Green Financing Framework in May 2022, on the basis of which the first green euro bond was issued in November 2022 with a fixed coupon of 4.75% and a volume of €500 million, maturing in November 2028. All the proceeds from the bond issue were used to finance sustainable projects.

As of December 31, 2024, the Group had total credit facilities of €2,700 million (previous year: €2,700 million) at its disposal. Of this amount, €2.5 billion is attributable to the five-year syndicated revolving credit facility arranged in March 2020. This credit facility’s term has been extended until March 2027 due to the exercising of two options to extend the term by one year in each case. A feature of the credit line is its link to an ESG (environment, social, and governance) rating: The better (worse) the externally calculated ESG score is, the lower (higher) the interest component of the credit facility.

All existing credit lines of €2,700 million remained unused as of the reporting date (previous year: €2,700 million unused).

Covestro issued Schuldschein loans in the equivalent amount of approximately €650 million in October 2022. The proceeds from the issue were used for general corporate financing and to replace short-term with long-term liquidity. The Schuldschein loans are likewise linked to an ESG rating. As of the reporting date December 31, 2024, obligations from Schuldschein loans amounted to of €392 million.

Covestro AG took out a €200 million research and development loan from the European Investment Bank (EIB) in September 2024. The focus here is, in particular, on sustainability and the circular economy in the European Union. This EIB loan has a term until September 2030. In addition, there are liabilities to the EIB from loans taken out in fiscal 2020 in the amount of €225 million and a term until September 2025.

As of December 31, 2024, commercial papers amounting to €40 million were outstanding under the Euro Commercial Paper Program (ECPP) established in fiscal 2022 with a potential total volume of €1.5 billion.

Financial debt consisted of the following:

The Covestro Group’s financial debt is unsecured.

Lease Liabilities

Lease payments of €874 million (previous year: €886 million) are to be made to the respective lessors in future years; of this amount, the interest component amounts to €138 million (previous year: €143 million). The lease liabilities mature as follows: