Philips prices €650M EU green bond due 2034

Royal Philips (NYSE: PHG, AEX: PHIA) priced a €650 million fixed-rate note offering due 2034 under its European Medium Term Note program, according to a company statement dated August 24, 2026.

The notes carry a coupon of 4.0% with an issue price of 99.655%, resulting in a yield of 4.055%. The 7.8-year tranche was oversubscribed 2.7 times.

Philips claims the issuance represents the healthcare industry's first EU green bond under the European Green Bond Standard. Proceeds are designated for taxonomy-aligned economic activities.

Settlement is scheduled for August 28, 2026. Philips has applied to list the notes on the Official List of the Luxembourg Stock Exchange and have them traded on that exchange's regulated market.

The company said the issuance is not expected to increase net debt. Gross debt will be temporarily elevated until repayment of a 2027 bond maturity in May 2027.

Philips currently holds a BBB+ rating from Standard & Poor's, a Baa1 rating from Moody's, and a BBB+ rating from Fitch, each with a stable outlook.

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