Launch of a new exchangeable bond and repurchase of the exchangeable bond due 2021 (10 June 2020 | 07:49 CET)

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014

[10.06.2020] | [07:49 CET]

[Issue of debt/buyback]

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, SOUTH AFRICA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES OF THE SECURITIES WOULD BE PROHIBITED BY APPLICABLE LAW.

This announcement is not a prospectus and not an offer of securities for sale in any jurisdiction, including in or into the United States, Japan, South Africa or Australia or any jurisdiction in which offers or sales of the securities would be prohibited by applicable law. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.

RAG-Stiftung launches an offering of new bonds exchangeable into shares of Evonik Industries AG and invites bondholders to submit offers to sell any and all of the outstanding exchangeable bonds due 2021 (ISIN: DE000A14J3R2)

Essen, 10 June 2020. RAG-Stiftung (the "Issuer") holds approximately 58.9% of in total 466,000,000 no-par value registered shares (ISIN: DE000EVNK013) of Evonik Industries AG (the "Shares"). RAG-Stiftung has issued four bonds exchangeable into existing ordinary registered shares of Evonik Industries AG of which three are currently outstanding (ISIN: DE000A14J3R2, DE000A2BPE24 and DE000A2LQRA1).

Today, the board of management of the Issuer decided on the concurrent launch of the following transactions:

• The offering of new senior and unsecured bonds exchangeable into existing ordinary registered shares of Evonik Industries AG in an aggregate principal amount of EUR 500 million, maturing in June 2026 (the "New Bonds"):

It is intended that an application will be made for the New Bonds to be admitted to trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.

The New Bonds will be offered by way of an accelerated bookbuilding to institutional investors outside the United States of America (the "United States") in reliance on Regulation S (Category 1) under the United States Securities Act of 1933 as amended, as well as outside of Australia, South Africa, Japan and any other jurisdiction in which offers or sales of the New Bonds would be prohibited by applicable law. In Canada, the offering will only be made to institutional investors who are both an accredited investor and a Canadian permitted client in Ontario, Québec, British Columbia or Alberta.

• The invitation to holders of the outstanding non-interest bearing senior, unsecured exchangeable bonds due 2021 (ISIN: DE000A14J3R2) in an outstanding aggregate principal amount of EUR 450 million (the "Outstanding Bonds") to sell any and all Outstanding Bonds for cash (the "Invitation to Sell"):

Concurrently with the New Bonds offering, the Issuer announces an invitation to holders of the Outstanding Bonds that are outside the United States and to whom the Invitation to Sell may otherwise be lawfully made to sell any and all of their Outstanding Bonds for purchase at the Issuer’s sole and absolute discretion for cash.

As at 5:30 p.m. CEST on 9 June 2020, EUR 450 million of the initially issued EUR 500 million in aggregate principal amount of the Outstanding Bonds remained outstanding.

The fixed purchase price per EUR 100,000 principal amount of the Outstanding Bonds will be EUR 100,000.

The Issuer will use the net proceeds of the offering of the New Bonds to finance the concurrent repurchase of Outstanding Bonds and to increase its existing financial assets in line with the Issuer’s investment strategy.

Contact/notifying person:
Dr Hans-Georg Heesen
Legal Adviser
RAG-Stiftung
Im Welterbe 10
45141 Essen
Fon +49 (0) 201 378 3350
Fax +49 (0) 201 378 3400
Email Hans-Georg.Heesen@rag-stiftung.de

Disclaimer:

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. No prospectus will be prepared in connection with the offering of the securities referred to herein. The securities referred to herein may not be offered to the public in any jurisdiction in circumstances which would require the preparation or registration of any prospectus or offering document relating to the securities referred to herein in such jurisdiction.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States. The distribution of this announcement and the offer and sale of the securities referred to herein may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not contain or constitute or form part of, and should not be construed as, an offer or invitation to sell, or the solicitation of an offer to buy or subscribe for, any securities to any person in the United States, Australia, South Africa or Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended or the laws of any state within the United States or under the applicable securities laws of Australia, South Africa or Japan, and may not be offered or sold in the United States, unless registered under the Securities Act or offered and sold in a transaction exempt from, or not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, South Africa or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, South Africa or Japan. There will be no public offer of the securities referred to herein in the United States, Australia, South Africa or Japan.

This announcement and the offer, when made, in member states of the European Economic Area, are only addressed to and directed at persons who are "qualified investors" as defined in the Prospectus Regulation ("Qualified Investors"). For these purposes, the expression "Prospectus Regulation" means regulation (EU) 2017/1129.

If located in a relevant member state, each person who initially acquires any securities, and to the extent applicable any funds on behalf of which such person acquires such securities that are located in a relevant member state, or to whom any offer of securities may be made will be deemed to have represented, acknowledged and agreed that it is a Qualified Investor as defined above.

The New Bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area. For these purposes, a "Retail Investor" means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU ("MIFID II") and (ii) a customer within the meaning of Directive 2002/92/EC ("IMD"), where that customer would not qualify as a professional client as defined in point (10) of article 4(1) of MIFID II. Consequently, no key information document required by Regulation (EU) No 1286/2014 (the "PRIIPs Regulation") for offering or selling the New Bonds or otherwise making them available to retail investors in the European Economic Area or the United Kingdom has been prepared and therefore offering or selling the New Bonds or otherwise making them available to any retail investor in the European Economic Area or the United Kingdom may be unlawful under the PRIIPs Regulation.

In the United Kingdom, this announcement is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) who fall within Article 49(2)(a) to (d) of the Order, or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors.

This announcement may include statements that are, or may be deemed to be, "forward‐looking statements". These forward‐looking statements may be identified by the use of forward‐looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward‐looking statements may and often do differ materially from actual results. Any forward‐looking statements reflect RAG‐Stiftung's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to its business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward‐looking statements speak only as of the date they are made.

RAG‐Stiftung and its affiliates expressly disclaim any obligation or undertaking to update, review or revise any forward looking statement contained in this announcement whether as a result of new information, future developments or otherwise.

No reliance may or should be placed by any person for any purposes whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. The information in this announcement is subject to change.

The date of admission of the New Bonds to trading may be influenced by things such as market conditions. There is no guarantee that admission will occur and you should not base your financial decisions on RAG‐Stiftung's intentions in relation to admission at this stage. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested. Persons considering making such investments should consult an authorised person specialising in advising on such investments. This announcement does not constitute a recommendation concerning the exchangeable bond offering. The value of shares can decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of the exchangeable bonds offering for the person concerned.