Business News

Borealis AG issues inaugural bond

Monday 26. April 2010 - Volume: up to EUR 200 million Tenor: 7 years Denomination: 1,000 EUR

Borealis, a leading provider of chemical and innovative plastics solutions,
is issuing for the first time a corporate bond transaction with a volume of
EUR 100 million (increasable) and with a tenor of 7 years. The additional
funds will be used for general corporate purposes including financing of
the company¡¦s major investment projects in Europe and the Middle East.
Coupon rate and issue price will be fixed shortly before the subscription
period starts and will depend on the relative market situation. The
denomination will be EUR 1,000. The bonds will be placed with Austrian
private and institutional investors. The value date of the bond is expected
to be April 30, 2010. Erste Group and UniCredit Bank Austria will act as
Joint Lead Managers for the transaction.

Borealis at a glance
With sales of EUR 4.7 billion in 2009, customers in over 120 countries,
and 5,200 employees worldwide, Borealis is the second largest plastics
producer in Europe and number 9 worldwide ranked by nameplate
capacity. Borealis is owned 64% by the International Petroleum
Investment Company (IPIC) of Abu Dhabi and 36% by OMV, the leading
energy group in the European growth belt, who support Borealis’ growth
ambitions as long-term strategic investors. Borealis operates production
plants, innovation centres and customer service centres in Europe and in
North and South America.

Through Borouge, a joint venture between Borealis and the Abu Dhabi
National Oil Company (ADNOC), Borealis’ footprint reaches out to the
Middle East, Asia-Pacific and the Indian Sub-Continent. Currently,
Borouge is tripling the annual production capacity of its petrochemical
complex in Ruwais, Abu Dhabi, to 2 million tonnes of polyethylene and
polypropylene, with the start-up planned for the middle of the year. An
additional 2.5 million tonnes expansion is scheduled for 2014.

Driven by innovation and technology
Building on its unique Borstar technology and experience in polyolefins
of more than 50 years, Borealis provides innovative, value creating
plastics solutions for the infrastructure (pipe systems and power and
communication cables), automotive and advanced packaging markets. In
addition, Borealis offers a wide range of base chemicals from melamine
and plant nutrients to phenol and acetone.

Tradition and expansion in Austria
Borealis is one of the biggest companies in Austria and has its global
headquarters in Vienna. In Schwechat, Borealis operates one of the most
modern polyolefins production plants in Europe with an annual production
capacity of around 1 million tonnes. In 2009, Borealis inaugurated its
international Innovation Headquarters in Linz. Borealis employs roughly
1,700 people in Austria. Over the last few years, more than EUR 100
million were invested in research and production in Austria. An additional
EUR 75 million investment in a plant for catalyst production and
development is currently being planned.

“Borealis and our owners pursue a long-term, world-wide growth strategy
based on Value Creation through Innovation,” says Borealis Chief
Financial Officer Daniel Shook. “We follow this strategy continuously with
multi-million-Euro investments at our traditional locations in Europe but
also in the Middle East throught our successful joint-venture, Borouge. To
our customers in over 120 countries, we offer innovative solutions that
create value for society.”

“Borealis is one of the leading companies in Austria and an essential
national economic driving force. The bond supports Borealis in continuing
with their significant investments,” says Franz Hochstrasser, Deputy
Chairman of Erste Group.

“The Borealis bond is the first inaugural bond in Austria in 2010 and
emphasises the importance of the bond market in corporate financing.
The bond is an enrichment to the portfolio of attractive Austrian
companies and we expect – also due to the lack of alternative investing
opportunities – a very strong demand, especially among private
investors,” states Helmut Bernkopf, Member of the Board of Bank Austria,
responsible for Corporates & Investmentbanking.

The offer
Issuer: Borealis AG
Volume: up to EUR 200,000,000.–*
Denomination: EUR 1,000.–
Coupon: 5.5 % p.a.*, annually
Tenor: 7 years
Issue Price: Will be fixed shortly prior to the subscription period
Redemption: 100% at maturity
Listing: Geregelter Freiverkehr of the Vienna Stock Exchange
Subscription Period: April 26 to April 28, 2010 (may close early)
Value Date: April 30, 2010
Paying Agent: Erste Group Bank AG
ISIN: AT0000A0H0V3

* Volume and coupon will be fixed shortly prior to the subscription period

Disclaimer:

This document does not constitute an offer to sell, or a solicitation of an offer to buy, the bonds (the “Bonds”) issued by Borealis AG (the “Issuer”). The offer of the Bonds by the Issuer (the “Offering) is based on the prospectus which was approved by the Commission de Surveillance du Secteur Financier, and
published and passported into Austria on April 2, 2010 (the “Prospectus”). During its validity, copies of the Prospectus will be published by making them available to the public in printed form, free of charge, at the registered office of the Issuer, Wagramerstraße 17-19, 1220 Vienna, Austria, and in electronic form on the website of the Luxembourg Stock Exchange under “www.bourse.lu”. In connection with the Offering only statements made in the Prospectus shall be binding. Prior to taking an investment decision, prospective investors should in particular consider the risk factors contained in the Prospectus. This document may not be distributed or published in the US, Canada, Japan or Australia or any other country where it may be unlawful to do so. The Bonds offered have not been registered under the US Securities Act of 1933 (the “Securities Act”), as amended, or with any authority of any state of the US, and may not be offered or sold in the US without registration or an exemption pursuant to the Securities Act. There may be no public offer of the Bonds in the US.