Chicago, Sept. 6 REWE International Finance BV priced 900 million of 4.875% sustainability-linked bonds due 2030 (BBB) on Wednesday, according to a sellside source.
A guarantee is being provided by REWE-Zentralfinanz eG.
The bonds priced at 99.803 to yield 4.909%, or at mid-swaps plus 170 basis points. Initial talk put the notes between mid-swaps plus 190 bps to 200 bps.
The company may optionally redeem the notes with a Bunds plus 35 bps make-whole premium. There is a three-month par call option.
There are three key performance indicators, all of them based on targets linked to emissions. The target observation date is Dec. 31, 2029.
Instead of an increase in the coupon if the targets are missed, REWE will need to pay a premium at maturity on each note.
The first target is based on scope 1 and 2 GHG emissions. If the company does not reduce emissions by 32% against a 2021 baseline, the premium will be an additional 17 bps.
REWEs second key performance indicator is linked to a 32% reduction in scope 3 non-FLAG emissions. The premium will be 34 bps if the target is missed.
The third target is based on a reduction of FLAG scope 3 emissions by 23%. The premium will again be 32 bps.
The maximum premium if all three targets are missed is 85 bps.
Societe Generale (billing and delivery), BNP Paribas, SEB and UniCredit are joint bookrunners for the Regulation S issue.
Proceeds will be used for general corporate purposes, including to refinance existing financial liabilities.
Investor calls were held on Monday and Tuesday. The order book went over 3.3 billion.
The bonds will be listed in Luxembourg.
REWE is a Cologne, Germany-based trade and tourism group.
| Issuer: | REWE International Finance BV
|
| Guarantor: | REWE-Zentralfinanz eG
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| Amount: | 900 million
|
| Issue: | Sustainability-linked bonds
|
| Maturity: | Sept. 13, 2030
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| Bookrunners: | Societe Generale (billing and delivery), BNP Paribas, SEB and UniCredit
|
| Coupon: | 4.875%
|
| Price: | 99.803
|
| Yield: | 4.909%
|
| Spread: | Mid-swaps plus 170 bps
|
| Call features: | Make-whole call at Bunds plus 35 bps; three-month par call
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 13
|
| Rating: | S&P: BBB
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 190 bps to 200 bps
|
| Marketing: | Investor calls
|
| ISIN: | XS2679898184
|
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