By Marisa Wong
Morgantown, W.Va., March 19 – Danone announced it launched a €300 million bond to finance and refinance projects with positive social impacts.
The bond issue consists of a 1% senior note due March 2025, according to a press release.
This social bond is the first to be issued by a multinational aligned with the new Social Bond Principles, as set out in June 2017 by the International Capital Market Association, the company said.
“A few weeks after the integration of ESG (Environment, Social and Governance) criteria in the payable margin of its [€2 billion] syndicated loan, this pioneering bond issuance continues to support Danone’s long-term ambition to leading the way to creating and sharing sustainable value.
“It attracted significant appetite from investors focused on ESG and was subscribed at attractive market conditions,” according to the release.
Proceeds will be allocated to projects promoting positive social impact on Danone’s stakeholders, including the following:
• Suppliers and agricultural partners by supporting responsible farming and agriculture. In the United States, for instance, Danone has pledged to develop a non-GMO offer;
• Communities: Danone has been promoting social inclusiveness through funds supporting local projects dedicated to empowering communities and social entrepreneurs;
• People with specific nutritional needs, through medical nutrition research in areas including pediatric neuro-disabilities and adult malnutrition and oncology. Danone provides tailored nutritional solutions to patients around the world;
• Healthy foods entrepreneurship, by financing investments in small- and medium-size enterprises in the health and nutrition sector. Since its launch in 2016, Danone Manifesto Ventures, for example, has invested in a number of companies bringing unique concepts and business models that help drive forward the Food Revolution; and
• Employees, with enhanced employee health care coverage and extended maternity, parental leave and post-natal care. Danone’s new parental policy, to be rolled out globally by 2020, has been recognized by UN Women, the global champion for gender equality, which has named chairman and chief executive officer Emmanuel Faber as a HeForShe Thematic Champion.
Settlement is slated for March 26, and the bond will be listed on Euronext Paris.
Danone is a global food and beverage company based in Paris.
| Issuer: | Danone
|
| Issue: | Senior bond
|
| Amount: | €300 million
|
| Maturity: | March 2025
|
| Coupon: | 1%
|
| Announcement date: | March 19
|
| Settlement date: | March 26
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
