Danone launches a successful €1 billion bond issue

Rhea-AI Summary

Danone has successfully issued a €1 billion bond with a 4.5-year maturity and a 0% coupon, enhancing its financial flexibility and extending its debt maturity. This bond issue, which is set to settle on June 1, 2021, received widespread subscription from a diversified investor base, reflecting confidence in Danone's business model and credit profile. Danone maintains a BBB+ rating from Standard & Poor's and a Baa1 rating from Moody's. The company aims to promote health through food while committing to sustainability and holding significant market share with €23.6 billion in sales reported in 2020.

Positive

• Successfully issued a €1 billion bond, enhancing funding flexibility.
• Widespread subscription indicates strong investor confidence.
• The bond will optimize debt maturity and cost.

Negative

• None.

Press Release – Paris, May 25, 2021

Danone launches a successful €1 billion bond issue

Danone announces that it has issued today a €1 billion bond with a 4.5-year maturity and a 0% coupon.

In line with the company’s active liquidity management, this issue enables Danone to further take advantage of market windows to enhance its funding flexibility, extend the maturity of its debt and optimize its cost.

The settlement is expected to take place on June 1, 2021 and the bonds will be listed on Euronext Paris.

The bond issue was widely subscribed by a diversified investor base, confirming the high confidence in Danone’s business model and credit profile.

Danone is rated BBB+, stable outlook, by Standard & Poor’s and Baa1, stable outlook, by Moody’s.

About Danone (www.danone.com)

Danone is a leading multi-local food and beverage company building on health-focused and fast-growing categories in 3 businesses: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With its ‘One Planet. One Health’ frame of action, which considers the health of people and the planet as intimately interconnected, Danone aims to inspire healthier and more sustainable eating and drinking practices. To accelerate this food revolution and create superior, sustainable, profitable value for all its stakeholders, Danone has defined nine 2030 Goals, and paved the way as the first listed company to adopt the “Entreprise à Mission” status in France. With a purpose to bring health through food to as many people as possible, and corresponding social, societal and environmental objectives set out in its articles of association, Danone commits to operating in an efficient, responsible and inclusive manner, in line with the Sustainable Development Goals (SDGs) of the United Nations. By 2025, Danone aims to become one of the first multinational companies to obtain B Corp™ certification. With more than 100,000 employees, and products sold in over 120 markets, Danone generated €23.6 billion in sales in 2020. Danone’s portfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including AQUA, Blédina, Bonafont, Cow & Gate, Horizon Organic, Mizone, Oikos, Prostokvashino, Silk, Vega). Listed on Euronext Paris and present on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Vigeo Eiris and Sustainalytics, as well as the Ethibel Sustainability Index, the MSCI ESG Indexes, the FTSE4Good Index Series, Bloomberg Gender Equality Index, and the Access to Nutrition Index.

Attachment

• Danone_250521_ENG

FAQ

What are the details of Danone's recent bond issuance?

Danone issued a €1 billion bond with a 4.5-year maturity and a 0% coupon, settling on June 1, 2021.

How has the market responded to Danone's bond issuance?

The bond was widely subscribed, indicating strong confidence from a diversified investor base.

What is Danone's credit rating?

Danone is rated BBB+ by Standard & Poor's and Baa1 by Moody's.

How much revenue did Danone generate in 2020?

Danone generated €23.6 billion in sales in 2020.

What is Danone's strategic financial goal with this bond?

The bond issuance aims to enhance funding flexibility and optimize the cost and maturity of its debt.