Novartis launches bond issue

Novartis has successfully issued a two-tranche bond, it has announced.

The transaction for $5 billion (3.46 billion pounds) consists of a five-year $2 billion debt security with a coupon of 4.125 per cent and a $3 billion ten-year pledge, which has an interest rate of 5.125 per cent.

Novartis notes the tranches are unconditionally guaranteed by the company, which is incorporated in Switzerland.

The firm says: “This transaction further enhances the financial flexibility of Novartis through this access to new sources of funding.

“Proceeds will be used for general corporate purposes.”

In October last year, Novartis revealed its net sales had increased 12 per cent to $31.4 billion in the first nine months of 2008.

The organisation added its operating income had also risen 24 per cent to $7.3 billion, while its basic earnings per share was up 22 per cent to $2.93.

Based in Basel, Switzerland, Novartis has five major research and development sites, including one in Horsham, west Sussex.