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. From the fixed-rate euro bonds issued under this program, there were still two bonds from the year⁠ ⁠2020 with a total volume of €1.0⁠ ⁠billion; they mature in February⁠ ⁠2026 (coupon of 0.875%, volume of €500⁠ ⁠million) and in June⁠ ⁠2030 (coupon of 1.375%, 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, 2025, the Group had total lines of credit of €2,500⁠ ⁠million (previous year: €2,700⁠ ⁠million) at its disposal. They are attributable in the full amount 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 €2,500⁠ ⁠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. In fiscal⁠ ⁠2025, Schuldschein loans of €240⁠ ⁠million were repaid as scheduled. As of the reporting date December⁠ ⁠31, 2025, there were remaining obligations from Schuldschein loans amounting to of €152⁠ ⁠million.

Covestro⁠ ⁠AG took out a further €200⁠ ⁠million research and development loan from the European Investment Bank (EIB) in April⁠ ⁠2025; the loan was already available as a line of credit as of the last reporting date. The focus here is, in particular, on sustainability and the circular economy in the European Union. This EIB loan matures in April⁠ ⁠2031. In addition, there are liabilities to the EIB from a loan taken out in fiscal⁠ ⁠2024 in the amount of €200⁠ ⁠million and a term until September⁠ ⁠2030. Liabilities to the EIB from loans taken out in fiscal⁠ ⁠2020 in the amount of €225⁠ ⁠million were repaid as scheduled in September⁠ ⁠2025.

Some of the loan agreements mentioned include standard change-of-control clauses. Where the lenders have not waived formal termination rights based on these clauses, the financial debt recognized in the statement of financial position is in the following reported as current, irrespective of any intention in principle to repay the loan prematurely.

Financial debt consisted of the following:

¹ Derivatives that do not qualify for hedge accounting.

The Covestro Group’s financial debt is unsecured.

Lease Liabilities

Lease payments of €793⁠ ⁠million (previous year: €874⁠ ⁠million) are to be made to the respective lessors in future years; of this amount, the interest component amounts to €119⁠ ⁠million (previous year: €138⁠ ⁠million). The lease liabilities mature as follows: