BNP Paribas in Switzerland leads CHF 500 million bond placement for Sika

April 3, 2025

BNP Paribas in Switzerland successfully acted as a joint lead manager in Sika’s latest CHF bond placement, showcasing its strong position in helping domestic corporates achieve attractive funding.

Deal overview

Sika successfully placed a new triple-tranche transaction comprising a 2.5-year, a 6.5-year, and a 10-year tranche amounting to a total of CHF 500 million. BNP Paribas acted as Bookrunner alongside UBS and Zürcher Kantonalbank:

Following Sika’s successful dual-tranche issuance last year, where BNP also acted as joint-lead manager, the Company decided to revisit its home market on the back of favourable market conditions.

Building on its strong reputation in its home market, Sika opted for an intraday execution strategy. As there was only one other financial issuer active in the CHF market, Sika was able to capture investors’ full attention.

A slight skew in terms of investor demand towards the longer tranche enabled Sika to tighten pricing throughout the process and finally price 5bps inside IPT levels in the 10-year tranche and 3bps in the two shorter tranches.

The three tranches priced with the following final terms:

  • 2.5-year CHF 150 million at SARON MS+57bps, implying a 0.750% coupon
  • 6.5-year CHF 150 million at SARON MS+67bps, implying a 1.100% coupon
  • 10-year CHF 200 million at SARON MS+80bps, implying a 1.350% coupon

Asset Managers dominated the allocations across all tranches followed by Insurance Companies and Private Banks.

About Sika

Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and automotive industry. The company operates in 103 countries and has over 400 production sites. Sika will use the proceeds from this bond placement for general corporate purposes, including refinancing existing financial obligations.