ESSEN (dpa-AFX) - Evonik's majority shareholder RAG Stiftung is planning to issue convertible bonds that can be exchanged for shares in the specialty chemicals company. The total nominal amount for the new bonds to be placed with major investors is 500 million euros, as the RAG Foundation announced in Essen on Tuesday. The term is to extend until 2030. At the same time, it intends to buy back outstanding bonds with various maturities totaling up to 500 million euros. The foundation holds 53 percent of Evonik's shares. The share price fell in trading.

The stock lost 3.4 percent to 17.78 euros in the late morning. This made the shares the third biggest loser in the MDax, the index of medium-sized German blue chips. The recovery of recent weeks could therefore be over for the time being.

One trader attributed the price losses to the arbitrage that is often common with convertible bonds. Investors bought the bonds and paid for them by selling shares into which the bonds can later be converted. Evonik's share price is currently at around the same level as at the beginning of the year. In spring 2022, the share was still worth almost €30.

The proceeds from the sale of the new bonds will reportedly be used to buy back existing securities. Non-interest-bearing securities maturing in 2024 are to be repurchased in the amount of up to 450 million euros. The RAG-Stiftung is offering the holders 97 percent of the nominal amount. The foundation intends to buy back up to 50 million euros of the bonds maturing in 2026, for which it is offering 94 percent of the nominal amount./men/mne/zb