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.


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