Novonesis Secures €1.7B in Bonds to Fuel Animal Biosolutions Dominance

COPENHAGEN, Denmark – March 16, 2026 – Biosolutions leader Novonesis has successfully completed a landmark €1.7 billion bond issuance, a move that cements its financial strategy following a pivotal acquisition and signals strong investor confidence in its post-merger growth trajectory.

The capital raised is primarily earmarked to refinance the bridge facility used for the June 2025 purchase of dsm-firmenich’s stake in the long-standing Feed Enzyme Alliance. This transaction underscores Novonesis' commitment to consolidating its leadership in the rapidly expanding animal biosolutions market.

A Debut Marked by Confidence

Making its inaugural entry into the euro bond market, Novonesis was met with overwhelming demand from a wide array of international investors. The total order book swelled to over €8.45 billion, more than four times the final issued amount, allowing the company to secure favorable terms. Bankers close to the deal noted that the company priced its debt with a "minimal concession," a testament to the market's positive reception of the newly formed bioscience entity.

The issuance, executed through Novozymes A/S under a new €4 billion Euro Medium Term Note (EMTN) Program, was structured in three tranches with staggered maturities:

• €500 million maturing in four years (March 2030) with a 3.25% fixed interest rate.
• €600 million maturing in seven years (March 2033) with a 3.625% fixed interest rate.
• €600 million maturing in eleven years (March 2037) with a 4.00% fixed interest rate.

The notes, which will be listed on the Luxembourg Stock Exchange, carry an 'A' rating with a stable outlook from S&P Global Ratings, mirroring the company's strong corporate credit rating. This successful bond debut not only replaces short-term bridge financing with a stable, long-term capital structure but also establishes a crucial public market benchmark for Novonesis' future financing activities.

"The significant interest from investors reflects confidence in Novonesis, our business model and the strategic direction we have set for the company," said CFO Rainer Lehmann in a company announcement. "We remain well-positioned to capture growth opportunities in the years ahead."

Power Play in Animal Nutrition

The financial maneuverings are directly tied to a major strategic play finalized in June 2025. Novonesis acquired full ownership of the Feed Enzyme Alliance by purchasing dsm-firmenich's share for €1.5 billion. For over 25 years, the alliance operated as a joint venture where Novonesis focused on R&D and manufacturing of animal feed enzymes, while dsm-firmenich managed sales and global distribution.

The dissolution of the partnership was prompted by a strategic shift at dsm-firmenich, which was separating its Animal Nutrition & Health business. For Novonesis, this presented a unique opportunity. By taking full control, the company has vertically integrated the entire value chain, from initial research and innovation to manufacturing, sales, and customer-facing distribution. The acquired activities represented approximately €300 million in annual net sales in 2024, providing an immediate and substantial boost to Novonesis' top line.

This move significantly strengthens Novonesis' position in the global animal biosolutions market, a sector experiencing robust growth. Industry analysts project the animal feed enzymes market, valued at over USD 1 billion in 2024, to grow at a compound annual growth rate (CAGR) of over 5% through 2033. This growth is fueled by a confluence of factors, including rising global demand for animal protein, a push for more sustainable and efficient livestock farming, and regulatory pressure to reduce the use of antibiotics in animal feed.

By controlling the entire process, Novonesis can now more directly steer product development, align sales strategies with its innovation pipeline, and capture margins previously shared with its partner. The company's portfolio, which was already strong in probiotics for animal health, is now vastly expanded in the critical enzyme segment.

The Post-Merger Strategy in Action

This acquisition and its successful refinancing are not isolated events but are central to the strategic vision of Novonesis, the entity formed from the landmark 2024 merger of Novozymes and Chr. Hansen. The merger created a global leader in biosolutions, and the company is now executing its ambitious 'GROW' strategy, which was unveiled in August 2025.

The strategy outlines a clear path to accelerating growth and reinvesting in long-term innovation. Novonesis has set aggressive financial targets for 2030, including an organic sales CAGR of 6-9% and an adjusted EBITDA margin of approximately 39%. The integration of the Feed Enzyme Alliance is a direct contributor to these goals, expected to enhance revenue, improve margins, and unlock significant synergies.

By securing long-term financing at fixed rates, Novonesis has de-risked its balance sheet and created a stable foundation for pursuing further growth. The establishment of the €4 billion EMTN program gives the company the flexibility and access to capital markets needed to act on future strategic opportunities, whether in its core business or in new growth areas like Biopharma Processing Aids and Future Fuels.

This decisive action demonstrates the combined strength of the merged entity, leveraging its scale and financial health to solidify its market leadership and deliver on its promise to harness the power of biology for a more sustainable world.