Novartis’ €1.85 Billion Sustainability-Linked Notes Offering

Mayer Brown advised Novartis AG and Novartis Finance S.A. in the deal. Bär & Karrer acted as Swiss legal advisor to Novartis in this transaction.

Novartis AG and Novartis Finance S.A. executed an offering of €1.85 billion 0.000% Sustainability-Linked Notes due 2028.

Barclays Bank PLC, HSBC Bank plc, J.P. Morgan Securities plc and Société Générale acted as joint lead managers and BNP Paribas, Credit Suisse Securities (Europe) Limited, Deutsche Bank Aktiengesellschaft and Mizuho Securities Europe GmbH as co-managers.

The transaction marks the first-ever offering of a sustainability-linked bond in the healthcare sector and the first-ever offering of a sustainability-linked bond incorporating “social” targets, with bondholders entitled to receive a higher amount of interest if Novartis fails to meet its targets for expanding access to its innovative medicines and addressing key global health challenges, two areas where Novartis can drive the greatest value for society. The transaction further marks only the second-ever sustainability-linked bond offering since the publication by the International Capital Markets Association (ICMA) of its Sustainability-Linked Bond Principles in June 2020.

Novartis is a leading global medicines company that uses innovative science and digital technologies to create transformative treatments in areas of great medical need.

The Mayer Brown team comprised lawyers from the firm’s offices in London and New York and was led by Banking & Finance partner Bernd Bohr (London; Picture) and included Banking & Finance partner James Taylor and associate Whitney Joseph (both London) and Tax Transactions & Consulting partner Jared Goldberger (New York).

Bär & Karrer advised Novartis in this transaction with a team included Thomas U. Reutter, Annette Weber and Fabian Wild (all Capital Markets) as well as Susanne Schreiber and Elena Kumashova (both Tax).

Involved fees earner: Elena Kumashova – Bär & Karrer; Thomas Reutter – Bär & Karrer; Susanne Schreiber – Bär & Karrer; Annette Weber – Bär & Karrer; Fabian Wild – Bär & Karrer; Bernd Bohr – Mayer Brown; Jared Goldberger – Mayer Brown; Whitney Joseph – Mayer Brown; James Taylor – Mayer Brown;

Law Firms: Bär & Karrer; Mayer Brown;

Clients: Novartis;