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Fresenius Medical Care, the world’s leading provider of dialysis products and services, has agreed to issue bonds with an aggregate principal amount of USD 1 billion. The bonds will mature in February 2031 and have an annual coupon of 2.375%. The issue price is 99.699%, resulting in a yield of 2.408%.

The proceeds will be used for general corporate purposes, including the refinancing of outstanding indebtedness.

The expected settlement date is September 16, 2020.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) 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 U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent such registration, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The securities are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States, only to certain non-U.S. investors pursuant to Regulation S. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in the United States.

This announcement has been prepared on the basis that any offer of bonds in any Member State of the European Economic Area (each, a Member State) will only be made pursuant to an exemption under Regulation (EU) 2017/1129 (as amended, the “Prospectus Regulation”), from the requirement to publish a prospectus for offers of securities. Fresenius Medical Care has not authorized, nor does it authorize, the making of any offer of securities in circumstances in which an obligation arises for Fresenius Medical Care or any other person to publish or supplement a prospectus for such offer.

This announcement is directed at and/or for distribution in the United Kingdom only to persons who (i) are outside the United Kingdom; (ii) 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 (the “Order”), (iii) are high net worth entities falling within article 49(2)(a) to (d) of the Order; or (iv) other persons to whom it may otherwise be lawfully communicated (all such persons together being referred to as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

This announcement contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. impacts of COVID-19, changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius Medical Care does not undertake any responsibility to update the forward-looking statements in this announcement. 

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. The information in this announcement is subject to change.

Fresenius Medical Care, the world’s largest provider of dialysis products and services, has proved resilient during the COVID-19 pandemic and remains on its growth course, Chief Executive Officer Rice Powell said at today’s Annual General Meeting. In order to protect all participants’ health amid the pandemic, this year’s meeting, originally set for May, was not held as usual in Frankfurt but as a virtual meeting on the Internet. Powell spoke from the company’s North America headquarters in Waltham, Massachusetts, in the United States, while other Management and Supervisory Board members joined from locations around the world.

In his speech to the shareholders, Powell stressed the essential contributions that Fresenius Medical Care is making during the pandemic: “We have proven to our patients that we are there for them, no matter what. All of our production sites are fully operational and able to meet demand, our supply chains remain intact, and our clinics open. This is vital for our patients.”

The CEO confirmed the company’s 2020 outlook, with revenue and net income growth in the mid to high single-digit range expected. “Our strong performance in the first half of the year proves the resilience of our vertically integrated business model, and it shows our strength in taking care of people – even in a challenging environment,” said Powell. “Summing up, we intend to continue our success story. Fresenius Medical Care is well-positioned to grow further – this year and in the post-COVID era.”

In addition, Powell outlined the company’s Global Sustainability Program, which was started last year and is under his direct responsibility. Management Board members’ compensation will in future also be oriented to this program. The new compensation system, which includes a non-financial performance target, was approved by the Annual General Meeting with a large majority.

A large shareholder majority of 99.89 percent also approved the company’s 23rd consecutive dividend increase. The dividend will be raised by 3 percent, to €1.20 per share.

Shareholder majorities of 96.60 and 94.58 percent, respectively, approved the actions of the General Partner and the Supervisory Board in 2019.

At the virtual Annual General Meeting, 79 percent of the registered capital was represented.

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

  • Solid revenue growth continued
  • Significant net income growth 
  • Exceptionally positive free cash flow development
  • Financial targets for FY2020 confirmed inclusive of anticipated COVID-19 effects

Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “As anticipated, we saw the COVID-19 pandemic spread globally in the second quarter and continue to rise in Latin America and the U.S. In this challenging environment, the wide-ranging measures we took at a very early stage to ensure the continuity and quality of care for our patients are continuing to pay off. Together with the tireless efforts of our employees, these steps have given Fresenius Medical Care a strong performance in the first half of the year. This validates our core value proposition and the resiliency of our business model, which is grounded in our vertical integration strategy. Against this background and the anticipated financial net effect from COVID-19, we confirm our outlook for the financial year 2020. We continue to monitor further impacts of the pandemic and potential restrictions in the different markets.”

FMC Q2 20 Keyfigures

2020 targets confirmed: mid to high single digit growth rates
On the basis of the neutral net impact of COVID-19 in the first six months, Fresenius Medical Care continues to expect both revenue and net income1 to grow at a mid to high single digit rate in 2020. These targets are inclusive of anticipated COVID-19 effects in constant currency, exclude special items3 and are based on the adjusted results 2019 including the effects of the operations of the NxStage acquisition and the IFRS 16 implementation.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
For a reconciliation of adjusted figures, please refer to the table at the end of the press release
Special items are effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. 

Measures to contain COVID-19 continued
Fresenius Medical Care continued its wide-ranging measures to fight COVID-19 in the second quarter. Thanks to the comprehensive protective measures taken at an early stage, Fresenius Medical Care was also able to maintain operations in its more than 4,000 dialysis centers worldwide without significant interruptions and minimizing the impact on patients. This was also made possible thanks to the use of telehealth solutions, which were applied – where necessary – to replace in-person with virtual patient interactions.

The COVID-19 pandemic affected people with advanced kidney disease and the resulting severity of illness generated an increase in hospitalization and mortality rates. In addition, the pandemic caused an interruption in routine medical visits and necessary hospitalization for many patients with advanced Chronic Kidney Disease (CKD) needing to consider renal replacement therapy. These two factors impacted the year-on-year growth for the second quarter. 

Expansion in home dialysis 
The expansion of home dialysis is a major growth area for Fresenius Medical Care. In the second quarter, the home dialysis offering in the Europe, Middle East and Africa (EMEA) region was expanded. The now-completed integration of the NxStage home dialysis products portfolio in the EMEA region enables Fresenius Medical Care to offer even more patients at-home treatment and a wider choice of treatment methods.

In North America, the number of home dialysis treatments increased by 15% compared to Q2 2019, with home hemodialysis treatments growing by 41%. June 2020 was the strongest month on record with regard to the number of patients being trained for home dialysis. This development will be supported by the rollout of additional 100 transitional care units to assist patients transitioning between modalities or returning to dialysis from transplants.

Patients, Clinics and Employees
As of June 30, 2020, Fresenius Medical Care treated 347,683 patients in 4,036 dialysis clinics worldwide. At the end of the second quarter, the Company had 124,736 employees (full-time equivalents) worldwide, compared to 119,631 employees as of June 30, 2019.

Solid revenue and strong income growth 
Revenue increased by 5% to EUR 4,557 million (+5% at constant currency), with organic growth of 4%. Health Care Services revenue rose by 5% to EUR 3,614 million (+4% at constant currency), mainly driven by growth in same market treatments and contributions from acquisitions. Health Care Products revenue grew by 6% and amounted to EUR 943 million (+7% at constant currency). This increase was mainly due to higher sales of products for acute care treatments and disposables for in-center dialysis.

In the first half of 2020 revenue rose by 7% to EUR 9,045 million (+6% at constant currency). Organic growth amounted to 4%. Health Care Services revenue grew by 6% to EUR 7,209 million (5% at constant currency). Health Care Products revenue rose by 8% to EUR 1,836 million (+8% at constant currency).

Operating income increased by 26% to EUR 656 million (+24% at constant currency), resulting in an operating income margin of 14.4% (Q2 2019: 12.0%). Based on a strong, underlying business performance, the increase in margin was largely due to the recovery of COVID-19 related negative effects experienced in the first quarter as well as ongoing cost saving measures. 

Operating income for the first half increased by 14% to EUR 1,211 million (+12% at constant currency), resulting in a margin of 13.4% (H1 2019: 12.5%).

Net income1 grew by 38% to EUR 351 million (+36% at constant currency). Adjusted net income increased by 40% (+38% at constant currency). Basic earnings per share (EPS) increased by 43% to EUR 1.20 (+41% at constant currency), driven by the earnings effects described above coupled with a decrease in the average weighted shares outstanding.

In the first half of 2020, net income increased by 21% to EUR 634 million (+18% at constant currency). EPS rose by 25% to EUR 2.15 (+22% at constant currency).

Exceptional cash-flow development
Fresenius Medical Care generated EUR 2,319 million of operating cash flow (Q2 2019: EUR 852 million) resulting in a margin of 50.9% (Q2 2019: 19.6%). The increase was largely driven by the U.S. federal government advanced payments under the CARES Act. In the first half of 2020, operating cash flow increased to EUR 2,903 million (H1 2019: EUR 928 million). 

Free cash flow (net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR 2,103 million (Q2 2019: EUR 559 million), resulting in a margin of 46.1% (Q2 2019: 12.9%). In the first half of 2020, the company generated a free cash flow of EUR 2,407 million (H1 2019: EUR 435 million).

Regional developments
In North America, revenue increased by 6% to EUR 3,240 million (+4% at constant currency, +4% organic). The increase was supported in particular by organic growth in the Dialysis and Care Coordination business and contributions from acquisitions. For the first half, North America revenue rose by 8% to EUR 6,426 million (+5% constant currency, +4% organic).

Operating income grew by 42% to EUR 609 million (39% at constant currency), resulting in a margin of 18.8 % (Q2 2019: 14.0%). Operating income margin increased mainly due to the recovery of COVID-19 related negative effects experienced in the first quarter, ongoing cost saving measures as well as lower costs for renal pharmaceuticals.

For the first half, operating income rose by 34% to EUR 1,073 million (31% at constant currency), resulting in a margin of 16.7% (H1 2019: 13.5%).

EMEA revenue increased by 6% to EUR 687 million (+8% at constant currency, +7% organic), supported by strong organic growth in the Health Care Products business, including higher sales of products for acute care treatment. For the first half, EMEA revenue rose by 5% to EUR 1,366 million (+6% at constant currency, +5% organic).

Operating income for the EMEA region decreased by 19% to EUR 78 million (-19% at constant currency), resulting in a margin of 11.3% (Q2 2019: 14.9%). The decrease in operating margin was mainly due to an unfavorable impact from an impairment of a license held by the joint venture with Vifor Pharma, based on an unfavorable clinical trial for the drug CCX-140. For the first half, operating income decreased by 24% to EUR 179 million (-23% at constant currency), resulting in a margin of 13.1% (H1 2019: 18.0%).

In Asia-Pacific, revenue decreased by 2% to EUR 450 million (-2% at constant currency, -1% organic). The growth was impacted by the effect of closed or sold clinics and a decrease in organic revenue in the Care Coordination business, driven by COVID-19. For the first half, revenue rose by 1% to EUR 893 million (stable at constant currency, +0% organic).

Operating income decreased by 9% to EUR 63 million (-10% at constant currency), resulting in a margin of 14.1% (Q2 2019: 15.1%). The decrease in margin was mainly due to impacts from the COVID-19 pandemic. For the first half, operating income decreased by 15% to EUR 140 million (-15% at constant currency) resulting in a margin of 15.7% (H1 2019: 18.5%).

Latin America revenue decreased by 2% to EUR 170 million (+24% at constant currency, +18% organic). For the first half, revenue rose by 1% to EUR 338 million (+24% constant currency, +17% organic).
Operating income increased by 85% to EUR 11 million (+110% at constant currency), resulting in a margin of 6.4% (Q2 2019: 3.4%). For the first half, operating income increased by 3% to EUR 18 million (+11% at constant currency), resulting in a margin of 5.3% (H1 2019: 5.2%). 

Virtual Annual General Meeting
Fresenius Medical Care has postponed its Annual General Meeting to August 27, 2020. With that, the resolutions regarding the allocation of the distributable profit and the payout of the dividend has also been postponed. The proposed dividend remains unchanged at €1.20 per entitled share.

Conference call
Fresenius Medical Care will host a conference call to discuss the results of the second quarter and first half of 2020 on July 30, 2020 at 3:30 p.m. CEDT (UTC +2) / 09:30 a.m. EDT (UTC -4). Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors” section. A replay will be available shortly after the call.

Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the second quarter and first half of 2020. Our 6-K disclosure provides more details.

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius Medical Care in Schweinfurt is committing to the sustainable production of life-sustaining medical devices. (left: Andreas Völker, Plant Manager, right: Jürgen Halbig, Environmental Officer)
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Fresenius Medical Care, the world’s leading provider of dialysis products and services, is joining through its Schweinfurt facility a Bavarian government initiative that aims to show how a strong economy is fully compatible with a healthy environment. The “Umweltpakt Bayern” (Bavaria environmental pact) includes a range of discussion and working groups where companies and public authorities in the German federal state can exchange views and expertise on topics such as climate, energy consumption and the sustainable use of resources.

In these forums, Fresenius Medical Care will be contributing know-how and experience in environmental management gained at its plant and development facility in Schweinfurt, a city in northern Bavaria about 120 kilometers (75 miles) east of Frankfurt.

Through efficient environmental and energy management based on the ISO standards 14001 and 50001, the Schweinfurt facility has steadily reduced its environmental impact while continuing to offer a safe, healthy workplace for all employees. By converting from oil to district heating, total CO2 emissions were cut by more than 30 percent. Measures including the systematic conversion to LED lighting and the use of energy-efficient injection molding machines reduced energy consumption, while waste material from the injection molding process is now recycled.

“Here in Schweinfurt we’re proud of our contribution to greater environmental protection,” said Andreas Völker, Plant Manager for Fresenius Medical Care in Schweinfurt. “As part of the Bavaria environmental pact, we are committing to the sustainable production of our life-sustaining medical devices. And the pact offers a valuable platform for exchanging information on technical issues related to environmental protection by companies.”

Opened in 1979, the Schweinfurt facility is Fresenius Medical Care’s most important research and production facility for dialysis machines and other medical devices. The company currently has more than 1,300 employees at the site, about a third of them in research and development.

 

Fresenius Medical Care, the world’s leading provider of dialysis products and services, will hold its Annual General Meeting (AGM) on August 27, 2020 as a virtual event. Originally, the AGM was scheduled for May 19, 2020. It had to be postponed due to the coronavirus pandemic. As it is currently impossible to predict for how long the restrictions for large public events will be in effect, Fresenius Medical Care will use the option provided by the German legislator to hold a virtual event to safeguard the health of shareholders, employees and service providers.

The proposed dividend by the General Partner and the Supervisory Board remains unchanged at €1.20 per share entitled to dividend.

Shareholders will be provided the possibility to follow the entire AGM on the internet. Fresenius Medical Care will include further details in the AGM invitation that is to be published in the Federal Gazette (Bundesanzeiger) and on the corporate website in July.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius Medical Care North America intends to open more than 100 new transitional care units (TCUs) this year. These units will help people recently diagnosed with kidney failure learn about the treatment options available to them including home dialysis, and become more empowered in managing their own care. TCUs are designed to be a separate space within a dialysis center with staff dedicated to onboarding patients new to dialysis during their first weeks of treatment, assisting patients transitioning between modalities, and supporting individuals returning to dialysis from transplant. Fresenius Medical Care North America has been rapidly opening TCUs, with a total of 65 operating already, in support of its home growth strategy. The company has found that over 50 percent of TCU patients will choose a home dialysis modality.

By speeding the line’s completion, Fresenius Medical Care is helping to ensure the continued availability of these life-sustaining medicinal products.
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Fresenius Medical Care, the world’s leading provider of dialysis products and services, has started a new production line for dialysis fluids at its St. Wendel, Germany, plant. The new line for so-called “CiCa solutions” – citrate anticoagulants, which prevent clotting of the blood – is the plant’s fifth production line for dialysis fluids used in the treatment of acute and chronic kidney disease. These and other dialysis products manufactured by the company in St. Wendel are shipped to healthcare facilities around the world.

Work on the new line was accelerated due to the coronavirus pandemic, enabling the company to put it into operation several months ahead of schedule. Severe COVID-19 cases often cause acute kidney failure, which has significantly increased worldwide demand for the solutions needed to conduct acute dialysis. By speeding the line’s completion, Fresenius Medical Care is helping to ensure the continued availability of these life-sustaining medicinal products.

“As one of the world’s most important manufacturing facilities for dialysis products, we are facing particular challenges from the pandemic,” said Plant Manager Gerhard Breith. “I am very proud that thanks to the extraordinary commitment of everyone involved, and the unmatched team spirit of our employees, we were able to complete this production line well ahead of schedule.”

Fresenius Medical Care’s St. Wendel plant, which went into operation in 1974, is one of the world’s largest production facilities for dialysis products and is also the development center for new products and production processes adopted by other company plants. Fresenius Medical Care has about 2,000 employees in St. Wendel.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius Medical Care, the world’s largest provider of dialysis products and services, is aware that patient data from some of the company’s dialysis centers in Serbia has been published by unauthorized persons. The company’s understanding is that this is associated with the IT incident which affected parts of Fresenius’s IT environment a few weeks ago and that hackers were able to steal certain data. The investigation is ongoing.

Fresenius Medical Care has immediately filed a complaint against the unknown attackers with the public prosecutor in Germany. The company is committed to fully cooperate with the relevant authorities. Furthermore, the company will contact the patients who are affected by the illegal data publication. 

The company’s operations in Serbia continue and the care of patients has been safeguarded. 

The company deeply regrets this invasion of some patients’ privacy, is doing its utmost to prevent further data to be published and to save affected patients and other stakeholders from harm. 

Internal and external specialists are continuously working to prevent further potential attacks or unauthorized data access.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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Fresenius Medical Care, the world’s largest provider of dialysis products and services, today successfully placed bonds in two tranches with an aggregate volume of €1.25 billion:

  • €500 million bonds with a 6-year maturity and a coupon of 1.000% were issued at a price of 99.405% resulting in a yield of 1.103%,
  • €750 million bonds with a 10-year maturity and a coupon of 1.500% were issued at a price of 99.742% resulting in a yield of 1.528%.

The proceeds will be used for general corporate purposes, including refinancing of existing financial liabilities.

Helen Giza, CFO of Fresenius Medical Care, said: “I am very pleased with this successful bond issuance, showing our ability to raise debt at attractive conditions also in this challenging market environment. With this, we are enhancing our strong financial position which is the basis for investing in our sustainable long-term growth.”

The bonds were drawn under the European Medium Term Note (EMTN) Program by Fresenius Medical Care. The company has applied to the Luxembourg Stock Exchange to admit the bonds to trading on its regulated market.

The envisaged settlement date is May 29, 2020.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities of Fresenius Medical Care to any person in Australia, Canada, Japan, or the United States of America (the “United States”) 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 U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent such registration, except pursuant to an exemption from, or in a transaction 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, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in the United States.

This announcement neither constitutes an offer to sell nor a solicitation to buy any securities of Fresenius Medical Care. The securities referred to in this announcement have already been sold.

No action has been taken that would permit an offering of the securities or possession or distribution of this announcement in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions. This announcement has been prepared on the basis that any offer of Notes in any member state of the European Economic Area (EEA) (each, a “Member State”) will only be made (i) pursuant to a prospectus prepared by Fresenius Medical Care pursuant to Regulation (EU) 1129/2017 (the “Prospectus Regulation”), or (ii) pursuant to an exemption under the Prospectus Regulation from the requirement to publish a prospectus for offers of securities. Fresenius Medical Care has not authorized, nor does it authorize, the making of any offer of securities in circumstances in which an obligation arises for Fresenius Medical Care or any other person to publish or supplement a prospectus for such offer.

This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons 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 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

This announcement contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius Medical Care does not undertake any responsibility to update the forward-looking statements in this announcement.

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. The information in this announcement is subject to change.

Fresenius Medical Care, the world’s leading provider of dialysis products and services, is enhancing its home dialysis offering in the company’s Europe, Middle East and Africa (EMEA) region. The now-completed integration in EMEA of the NxStage home dialysis portfolio, following U.S.-based NxStage’s acquisition by Fresenius Medical Care, enables the company to offer even more patients at-home treatment and a wider choice of treatment methods.

Home dialysis offers a number of advantages to patients, above all the freedom to be treated on their own schedule and in the comfort of their own home. During the current difficult situation, this enables them to receive their lifesaving dialysis treatment without having to go out and risk a possible infection with COVID-19.

“Due to the integration of the NxStage portfolio in the EMEA region, we can offer lifesaving dialysis to a growing number of patients in their home environment,” said Dr. Katarzyna Mazur-Hofsäß, Fresenius Medical Care’s Chief Executive Officer for EMEA. “In this way we are expanding treatment options and contributing to continuous care. Our commitment is to be able to offer every person who needs dialysis the right therapy, at the right time, in the right place.”

With home dialysis, the therapy options include home hemodialysis (HHD) and peritoneal dialysis (PD).

The “NxStage SystemOne” from Fresenius Medical Care, an HHD system that is especially easy to operate, allows patients to dialyze more frequently but for shorter periods than in a dialysis clinic. This may bring improved treatment results: The increased dialysis frequency makes improved blood pressure control possible, is associated with faster recovery time after treatment, and helps patients feel better.

It is possible to carry out home dialysis overnight (nocturnal hemodialysis), while the patient sleeps. It can be a slower and longer treatment that more closely resembles healthy kidney function, and therefore can be gentler on the heart. In addition, the removal of toxic metabolic products from the blood is even more thorough (improved middle molecule clearance), which can allow patients to enjoy a less-restrictive diet.

Along with HHD, Fresenius Medical Care offers a broad range of products for continuous ambulatory peritoneal dialysis (CAPD) and automated peritoneal dialysis (APD), which use the body’s own abdominal membrane – the peritoneum – as a natural filter. The product range includes biocompatible dialysis fluids, bag systems, cyclers for automated peritoneal dialysis, and the related bag and tube systems.

Currently about 7 percent of dialysis patients in the EMEA region use home dialysis. Fresenius Medical Care supports both home and in-center dialysis equally, in order to provide the best and most suitable treatment for each individual patient.

Reference papers:
Pierratos A. et al. Nocturnal Hemodialysis: three-year experience. J Am Soc Nephrol 9: 859-868, 1998.

Walker R. et al. Home hemodialysis: a comprehensive review of patient-centered and economic considerations. ClinicoEconomics and Outcomes Research 9: 149-161, 2017.

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