Danone launches a successful €700 million bond issue

Rhea-AI Summary

Danone has successfully issued a €700 million bond with a 9-year maturity and a coupon rate of 0.52%. This initiative is part of Danone's strategy to enhance funding flexibility and extend debt maturity. The bond is set to settle on November 9, 2021, and will be listed on Euronext Paris. Investor demand was strong, reflecting confidence in Danone's business model. The company holds a BBB+ rating from Standard & Poor’s and Baa1 from Moody’s, both with a stable outlook. Danone aims for B Corp™ certification by 2025 and generated €23.6 billion in sales in 2020.

Positive

• Successful issuance of €700 million bond.
• Strong investor demand indicates confidence in Danone's business model.
• Improves funding flexibility and extends debt maturity.
• Stable credit ratings from major agencies (BBB+ and Baa1).

Negative

• None.

Press Release – Paris, November 2, 2021

Danone launches a successful €700 million bond issue

Danone announces that it has issued today a €700 million bond with a 9-year maturity and a 0.52% 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 and extend the maturity of its debt.

The settlement is expected to take place on November 9, 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_bond_issue_nov21_eng

FAQ

What was the amount of the bond issued by Danone on November 2, 2021?

Danone issued a €700 million bond on November 2, 2021.

What is the maturity period and coupon rate of the bond issued by Danone?

The bond has a 9-year maturity and a coupon rate of 0.52%.

When is the settlement date for Danone's bond issue?

The settlement for the bond issue is expected to take place on November 9, 2021.

What ratings did Danone receive for its credit profile?

Danone received a BBB+ rating from Standard & Poor’s and a Baa1 rating from Moody’s, both with a stable outlook.

How did the bond issue affect Danone's funding strategy?

The bond issue enhances Danone's funding flexibility and allows it to extend the maturity of its debt.