L'Oréal's first €3 billion dual-tranche bond offering includes a sustainability-linked tranche
L'Oréal prices its €3.0 billion initial public bond offering. A total of €10.7 billion was demanded, more than 3.5 times the offering's volume. On March 29, 2022, the bonds will be listed on Euronext Paris. L'Oréal aims to be a Beauty Tech powerhouse. The Group expects 32.28 billion euros in 2021.
L'Oréal today announced the successful pricing of its initial public bond offering for a total nominal amount of €3.0 billion.
The offering is divided into three tranches:
A €1,000 million two-year fixed-rate bond with a coupon of 0.375% per annum. A €750 million two-year floating rate note and a €1,250 million four-and-a-half-year Sustainability-Linked bond with a coupon of 0.875% per annum.
With total demand of €10.7 billion, just over 3.5 times the combined volume of the offering, the new issuance has received an exceptional market reception.
The Sustainability-Linked bond complements L'Oréal's recently launched Sustainability-Linked Financing Framework. Sustainalytics, a rating provider, independently assessed the framework and published a Second-Party Opinion.
The Sustainability-Linked bond is contingent on L'Oréal meeting three Sustainability Performance Targets:
Absolute Scopes 1 and 2 GHG emissions at all L'Oréal-operated sites will be zero by December 31st, 2025. Reduce GHG emissions from Scopes 1, 2, and 3 by 14% per sold product by 2025, based on a 2021 baseline. By 2025, 50% of the Group's plastics used in packaging will be recycled or biobased.
L'Oréal will report on the level of achievement of the Key Performance Indicators in its Universal Registration Document on an annual basis.
The Sustainability-Linked Financing Framework and the Second-Party Opinion are available on the Loreal Finance website at www.loreal-finance.com.
The net proceeds from the bonds will be used for general corporate purposes, including the repayment of short-term debt associated with L'Oréal's announced buyback of 4% of its own shares from Nestlé on December 7, 2021.
The bonds, which are rated AA (Stable) by S&P and Aa1 (Stable) by Moody's, will be admitted to trading on Euronext Paris on the settlement date, which is scheduled for March 29, 2022, subject to the Autorité des Marchés Financiers' approval of the prospectus.
BNP Paribas and J.P. Morgan are the bond's Global Coordinators and Joint Bookrunners. Joint Bookrunners include Citi, Crédit Agricole CIB, Deutsche Bank, HSBC, Natixis, and Société Générale. ESG Structuring advisors include BNP Paribas, Crédit Agricole CIB, and J.P. Morgan.
For over 110 years, L'Oréal, the world's leading beauty company, has focused solely on one goal: to fulfill the beauty aspirations of consumers worldwide. Our mission, to create beauty that moves the world, characterizes our approach to beauty as inclusive, ethical, generous, and committed to social and environmental sustainability. With our diverse portfolio of 35 international brands and ambitious sustainability commitments in our L'Oréal for the Future program, we provide the best in terms of quality, efficacy, safety, sincerity, and responsibility to every person on the planet, while celebrating beauty in its infinite variety.
With 85,400 dedicated employees, a balanced geographical footprint, and sales across all distribution networks (e-commerce, mass market, department stores, pharmacies, hair salons, branded and travel retail), the Group expects to generate 32.28 billion euros in revenue in 2021. L'Oréal is dedicated to inventing the future of beauty and becoming a Beauty Tech powerhouse, with 20 research centers in 11 countries and a dedicated Research and Innovation team of over 4,000 scientists and 3,000 tech professionals.