Chemicals industry Bond Financing grows to USD126bn

Post Date: 02/10/2015

Companies in the Chemicals Industry sector have USD126bn of debt outstanding in the international bond markets. This has grown from USD108.8bn (15.9%) over the last year and from USD97.2bn (29.6%) over the last three years.


Issuance peaked during Q2 and Q3 of 2014 but was down to USD1.5bn in Q3 2015. Whilst this is lower, it is also a holiday period in which markets are less active. Redemptions during Q3 2015 have equally been lower at USD2.6bn.


After a drop in Q1 2015, Q2 2015 saw an increase in issuance, with USD1bn issued by Bluestar Finance Holdings Ltd., the financing unit of China National Bluestar Group. In fact, there are a number of new Chinese borrowers like China Energy Reserve and Chemicals Group and China Petrochemical Development Corporation. 


Issuers from the Chemical Industries that have issued bonds consistently each quarter over the last two years are Akzo Nobel and Dow Chemical Company. These have issued on average around USD500m per quarter but this total is halved for Dow Chemical if Q3 2014 is excluded.


The largest increases in oustandings over the past 12 months have come from Eastman Chemical Company, Albemarle Corp and PSPC Escrow Corp.


Here is a definition of the Chemicals Industry sector.


The data used in these statistics is aggregated from a network of nearly 20,000 registered bond and money market professionals globally. The network links users representing issuers of commercial paper, certificates of deposit, medium term notes and so on, with dealers and investors (and visa versa) and acts as a fixed income utility that not only matches ISINs (International Securities Identification Number) with LEIs (Legal Entity Identifier) but also keeps users up to date. By uploading instruments users automatically become part of a targeted organic and dynamic network that keeps them informed about the instruments they hold, trade or have issued. This allows them to target Corporate Actions directly to the registered holders.