BayWa's Hybrid Bondholders Face October Reckoning as Creditor Coalition Falls Into Place
Published on 09/28/2026 at 09:41 | Editorial boerse-global.de
BayWa AG has locked in near-unanimous backing from its financing partners for a reworked restructuring agreement, yet the Munich-based conglomerate's hybrid bond investors are being asked to swallow losses of a far greater magnitude — a divide that will be put to a formal vote in mid-October.
The framework agreed on 16 September rests on support from 267 of the group's 268 financing partners, representing roughly 99.98 percent of the financial liabilities covered by the restructuring deal. Both major shareholders — Bayerische Raiffeisen-Beteiligungs-AG and Raiffeisen Agrar Invest AG — have also thrown their weight behind the plan. As part of the arrangement, the restructuring deadline has been extended to give management sufficient runway to execute the measures, with the board aiming to have the final amended agreement signed off before the end of 2026.
A 98 Percent Haircut for Hybrid Creditors
The terms facing holders of the company's hybrid bond stand in stark contrast to the consensus reached with the banks. Under the proposal, investors would forfeit 98 percent of the nominal amount without compensation, surrender all accrued interest claims, and see the coupon slashed from 7.75 percent to 3.00 percent per year. The instrument carries a volume of EUR 100 million, according to Reuters, meaning bondholders would recover just two percent of their capital. BayWa announced the terms via ad-hoc disclosure and has made the documentation for a written voting procedure — conducted without a physical meeting — available in its download center.
Should investors sell immediately? Or is it worth buying BayWa?
The Schutzgemeinschaft der Kapitalanleger (SdK) voiced sharp criticism of the plan on Wednesday. The investor protection association objects in particular to the Kronos EKS AG & Co. KG having taken over as the new issuer of the security with effect from 18 September 2026, arguing that the conditions amount to a severe disadvantage for subscribers. The creditor vote is scheduled for 12 to 14 October 2026, when bondholders will decide whether to accept the package as presented.
EUR 1.5 Billion in Waived Claims
The hybrid bond measures form one piece of a broader overhaul. Under the amended concept, creditors are to waive claims totaling approximately EUR 1.5 billion, as reported by Handelsblatt. The agreement still requires further formal approvals before it becomes legally binding.
For shareholders, attention now shifts to a crowded autumn calendar. Beyond the outcome of the creditor ballot in mid-October, the company has earmarked 30 October 2026 for publication of its annual financial report. Only once the audited figures are released and the creditor waivers are legally confirmed will the financial reorganization stand on solid ground.
Shares Slip in Monday Trading
In Monday's session, BayWa stock gave up ground, trading at EUR 8.00 for a loss of 2.7 percent. No company-specific catalyst for the move has been identified. The decline follows a modest recovery at the end of last week, when the shares added 1.7 percent on Friday to close at EUR 8.44, putting the group's market capitalization at EUR 814.69 million heading into the weekend.
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