June 25, 2014

Not intended for U.S. Media - To finance the acquisition of the consumer care business of Merck & Co., Inc.

Bayer issues hybrid capital of EUR 3.25 billion

Largest corporate euro hybrid bond transaction worldwide
Leverkusen, June 25, 2014 - On Wednesday Bayer issued two hybrid bonds with a
total volume of EUR 3.25 billion. This issuance is the first step in the
refinancing of the USD 14.2 billion bridge loan arranged to finance Bayer's
acquisition of the consumer care business of Merck & Co., Inc., Whitehouse
Station, New Jersey, United States.

The bonds are structured to receive equity credit of 50 percent from the
relevant rating agencies so that Bayer's single A rating remains intact.
Investor demand for the bonds was exceptionally strong, and the orderbook was
more than 3 times oversubscribed.

The first tranche of EUR 1.75 billion has a maturity of 61 years and a coupon
of 3.0 percent. Bayer has an early redemption option for the first time in
2020. The second tranche of Euro 1.5 billion has a maturity of 60 years and a
coupon of 3.75 percent. On this tranche, Bayer has an early redemption option
for the first time in 2024. From 2020 and 2024 respectively the coupons will be
reset at regular intervals. The bonds are subordinated to all other financial
liabilities of Bayer and rank pari-passu to Bayer's existing hybrid of EUR 1.3
billion issued in 2005.

"This hybrid transaction represents an important step in the financing of the
acquisition of Merck & Co., Inc.'s consumer care business - and is proof of our
commitment to a conservative financial policy," said the CFO of Bayer AG,
Werner Baumann. "Our continuously strong backing in the capital markets is the
optimal basis for further financing measures."

Barclays, BNP Paribas, Citigroup and HSBC were mandated as active bookrunners
on the transaction.

Bayer: Science For A Better Life

Bayer is a global enterprise with core competencies in the fields of health
care, agriculture and high-tech polymer materials. As an innovation company, it
sets trends in research-intensive areas. Bayer's products and services are
designed to benefit people and improve their quality of life. At the same time,
the Group aims to create value through innovation, growth and high earning
power. Bayer is committed to the principles of sustainable development and to
its social and ethical responsibilities as a corporate citizen. In fiscal 2013,
the Group employed 113,200 people and had sales of EUR 40.2 billion. Capital
expenditures amounted to EUR 2.2 billion, R&D expenses to EUR 3.2 billion. For
more information, go to www.bayer.com.


Disclaimer

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to any U.S. person. These materials are not an offer for sale of any securities
in the United States or to, or for the account or benefit of a, U.S. person.
Securities may not be offered or sold in the United States absent registration
or an exemption from registration under the U.S. Securities Act of 1933, as
amended. The Company has not registered and does not intend to register any
portion of any offering in the United States or to conduct a public offering of
any securities in the United States.

This news release may contain Forward-looking statements
based on current
assumptions and forecasts made by Bayer Group or subgroup management. Various
known and unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in Bayer's public reports, which are available on the
Bayer website at www.bayer.com. The company assumes no liability whatsoever to
update these forward-looking statements or to conform them to future events or
developments.