Royal Philips Prices First Healthcare EU Green Bond

Royal Philips priced a EUR 650 million offering of fixed-rate notes due 2034 on August 24, 2026. The issuance represents the first EU Green Bond in the healthcare industry to be issued under the new European Green Bond Standard.

The notes were priced at 99.655% with a 4.0% coupon, resulting in a yield of 4.055%. The 7.8-year tranche saw strong investor demand, ending oversubscribed by 2.7 times. The company intends to use the gross proceeds to finance taxonomy-aligned economic activities as part of its 2030 Impact Ambition.

Settlement is scheduled for August 28, 2026, with the notes expected to be listed and traded on the Luxembourg Stock Exchange. While the issuance will temporarily increase gross debt, the company stated it is not expected to increase net debt because the amount will be offset by the repayment of a 2027 bond maturity in May 2027.