Drinks producer Pernod Ricard has set the terms of its new Euro-denominated bond issuance for an aggregate amount of €750 million for seven years.
The deal represents Pernod Ricard’s inaugural sustainability-linked bond, which focuses on two environmental commitments – reducing the group’s absolute greenhouse gas emissions (Scope 1&2) and decreasing the water consumption per unit at distilleries.
This transaction is part of the group's integration of sustainability actions into its daily operations and financing strategy, and is in line with its sustainability and responsibility (S&R) roadmap, the company noted.
Hélène de Tissot, EVP finance, IT and operations at Pernod Ricard, said, "We are very proud of this inaugural sustainability-linked bond issuance, further emphasising Pernod Ricard’s ESG strategy and ambition.
"The transaction was very well received, demonstrating the markets’ confidence in the company’s financial strength, strategy and ability to deliver on its ESG targets. This first sustainability-linked bond in the wine and spirits sector highlights the strong interest among investors for sustainable finance."
Pernod Ricard Sustainability-Linked Bond
The company said that favourable market conditions and a positive reception from investors allowed it to price the issuance at a coupon of 1.375%.
The publication of a dedicated sustainability-linked framework highlights the group’s ambition to become an active player in sustainable finance.
The framework is aligned with ICMA’s 2020 sustainability-linked bond principles (SLBP) and LMA’s 2021 sustainability-linked loan principles (SLLP) and received a second party opinion from Sustainalytics.
Vanessa Wright, chief sustainability officer of Pernod Ricard said, "I am delighted by the success of this issuance, linking the cost of financing to concrete, sustainable targets and our Good Times from a Good Place 2030 strategy.
"This financial transaction is an amazing opportunity to emphasise that our ESG ambition is at the heart of our strategy"
The net proceeds of this issuance will be used for general corporate purposes of Pernod Ricard.
An application will be made for the bonds to be admitted to trading on Euronext Paris.
The bonds are expected to be rated Baa1 by Moody’s and BBB+ by Standard & Poor’s, the drinks group added.
© 2022 European Supermarket Magazine – your source for the latest drinks news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.