Dow to Launch $1 Billion Euro-Commercial Paper Program
MIDLAND, Mich. – November 6, 2000 — The Dow Chemical Company today announced plans to launch a multi-currency European Commercial Paper (ECP) program this month with a capacity of $1 billion.
According to Geoffery E. Merszei, Dow vice president and treasurer, "Our desire to broaden Dow's sources of funding and to have flexibility to raise short-term capital outside the U.S. are key drivers behind this initiative."
Merszei noted that Dow's efforts to reach more investors have yielded solid results to date. In August, Dow used an Internet auction platform to price and allocate a 5-year bond. "In that transaction, we reached three times as many investors as with a traditional bond offering, reaching a fair market price," he said. "The new ECP program is yet another avenue to reach a broader base of investors. By doing so, we expect to raise short-term capital in both the U.S. and Europe at competitive rates."
Dow has commissioned Deutsche Bank AG London to arrange the program. Citibank International PLC in London will act as dealer on the program, together with Deutsche Bank. This program will provide Dow with added financial flexibility to meet its ongoing corporate funding needs.
The ECP program is rated A1 by Standard & Poor's, P1 by Moody's Investors Service and F1 by Fitch IBCA, the same ratings that are effective for Dow's U.S. commercial paper program. Dow's long-term debt is rated A by S&P, A1 by Moody's and A+ by Fitch IBCA.
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