Galenica AG secures long‑term financing through CHF 250 million bond issuance
On 10 November 2025, Galenica AG completed the placement of a fixed‑rate corporate bond worth CHF 250 million, a strategic move that strengthens the company’s balance sheet and provides financial flexibility for its ongoing expansion initiatives.
Key terms of the issuance
- Maturity: 2032 (seven‑year tenor)
- Coupon: 1.08 % per annum, payable annually
- Lead manager: UBS, acting as sole lead manager
- Listing: Application filed for admission to trading on the SIX Swiss Exchange
The proceeds are earmarked primarily for the repayment of bridge financing associated with the recent acquisition of the Labor Team Group, a transaction that has expanded Galenica’s footprint in the Swiss pharmacy retail sector. Remaining funds will support general corporate purposes, including working‑capital needs and potential future growth projects.
Integration into Galenica’s debt profile
The new bond complements existing obligations:
| Issue year | Outstanding amount | Coupon |
|---|---|---|
| 2026 | CHF 180 million | 1.0 % |
| 2029 | CHF 240 million | 2.35 % |
| 2031 | CHF 100 million | 1.65 % |
By adding a 2032 maturity, Galenica achieves a more balanced debt schedule, aligning maturities to better match projected cash flows. The modest coupon of 1.08 % reflects the company’s strong credit standing and the current low‑interest‑rate environment, allowing it to secure cost‑efficient capital.
Impact on financial metrics
With the bond issuance, Galenica reduces short‑term liabilities associated with bridge financing and locks in a stable long‑term financing structure. This action is expected to:
- Lower the company’s debt‑to‑equity ratio over the medium term, reinforcing its leverage profile.
- Improve liquidity metrics, providing a cushion for operational needs and potential capital expenditures.
- Support a forward‑looking earnings outlook, as the company can focus on integrating the Labor Team Group and expanding its retail network without the pressure of immediate debt servicing costs.
Strategic outlook
The successful placement of the bond demonstrates Galenica’s disciplined capital management and its ability to secure favorable terms in a competitive market. By funding the Labor Team acquisition and maintaining a robust liquidity buffer, Galenica positions itself to capture market share in the Swiss health‑care retail landscape, while preserving financial flexibility to pursue additional strategic initiatives.
