media release

AkzoNobel announces new bond and launches tender offer to improve the company’s debt maturity profile

AkzoNobel announced today that the company intends to issue a €800m euro bond with a seven year maturity, at a coupon of 4%. The announcement of the bond was well received by the market with an order book exceeding €3 billion.

AkzoNobel has simultaneously announced a tender offer to re-purchase an estimated €600 million of its previously issued bonds, specifically bonds set to mature in January 2014 (7.75 percent, €1 billion) and March 2015 (7.25 percent, €975 million).

The new bond issue and purchase of existing bonds will improve the overall debt profile of AkzoNobel, further reducing future refinancing risk and improving its maturity profile.

The buyback of company bonds will result in an accounting loss, which will be determined at the end of the tender process. However, this loss will be off-set by the significantly reduced coupon on the new seven year bond.

The new bonds will be issued by Akzo Nobel NV and will be listed on the Luxembourg Stock Exchange. Settlement is scheduled for December 15, 2011, and the bonds will mature on December 17, 2018.

AkzoNobel is committed to maintaining a strong investment grade rating. Currently the company has a BBB+ rating with Standard & Poor’s and a Baa1 rating with Moody’s.

For more details on the tender offer, please refer to the announcement relating to the tender offer published by Akzo Nobel N.V. and Akzo Nobel Sweden Finance AB (publ) on the website of the Luxembourg Stock Exchange dated December 8, 2011.

Further details of the outcome of the tender offer will be announced when completed.

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