HOUSTON, July 11, 2024 /PRNewswire/ — Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value biobased products derived from pine wood pulping co-products, is proud to announce the successful completion of its global bond issuance, raising USD 1 billion with the backing of KDB’s (Korea Development Bank) credit guarantee. This strategic financial move underscores the strength of Kraton’s market position and its innovative partnership with parent company DL Chemicals, which is focused on leveraging our combined expertise and market reach to drive sustainable growth.
The global bond issuance saw robust participation from key investors across Asia, Europe, and the United States. Six renowned bookrunners efficiently managed the book-building process: KDB, Citigroup, Crédit Agricole, JP Morgan, Mizuho, and Standard Chartered. This reflects global confidence in Kraton’s financial health and strategic vision for the future.
The three-year global bonds were issued at a competitive rate, reducing Kraton’s overall capital cost thanks to the KDB-backed credit guarantee. This guarantee, the largest of its kind by a domestic bank, played a crucial role in securing the favorable interest rate, highlighting the market’s trust in DL Chemical and Kraton’s expertise and robust business model. This successful bond issuance offers numerous strategic benefits to Kraton, including expanded global reach in debt markets, strengthened relationships with key financial institutions, substantial interest rate savings, improved cash flow, and a reinforced capital structure.
Kraton’s CEO, Marcello Boldrini, commented on the successful bond issuance: “This strategic financial milestone is a testament to the confidence the global market has in Kraton and DL Chemicals. The credit guarantee from KDB, the largest ever by a domestic bank on global bonds, underscores our strong financial foundation and the exceptional trust in our strategic direction. We are committed to leveraging this success to fuel our growth and enhance value for our stakeholders.”
DL Chemical’s CEO, Jong Hyun Kim, added: “Our collaboration with Kraton continues to yield significant strategic benefits. This bond issuance strengthens Kraton’s financial position and exemplifies the synergistic potential of our combined expertise and market reach.”
For more information about Kraton, please visit www.KRATON.com.
About DL Chemicals: DL Chemicals is a global leader in the chemical industry renowned for its innovation, sustainability, and commitment to excellence. Its partnership with Kraton enhances its global footprint and strengthens its position in the market.
About Kraton Corporation: Kraton Corporation is a leading global producer of specialty polymers and high-value performance products derived from renewable resources. Kraton’s polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, and medical, packaging, automotive, paving, and roofing products. As the largest global provider in the pine chemicals industry, the company’s pine-based specialty products are sold into adhesive, road and construction, and tire markets, and it produces and sells a broad range of performance chemicals into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids, and lubricants, inks, and mining. Kraton offers its products to a diverse customer base in over 70 countries.
*Kraton, the Kraton logo, and design are all trademarks of Kraton Corporation, or its subsidiaries or affiliates, in one or more, but not all, countries.
Media Contact: Kristen Boyd; T: (346) 280-7572
SOURCE Kraton Corporation
