Pernod Richard Issues its First Sustainability-Linked Bond for EUR 750 Million

Published on: 06 April 2022
by KnowESG
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Pernod Richard, the world's second-largest wine and spirits seller, has recently issued its first-ever sustainability-linked bond for an aggregate amount of EUR750 million for 7 years.

The transaction is Pernod Ricard's first sustainability-linked bond, which is connected to two environmental commitments: reducing the Group's absolute greenhouse gas emissions (Scopes 1&2) and reducing water use per unit at distilleries. This transaction demonstrates Pernod Ricard's continued integration of sustainability activities into its day-to-day operations and finance strategy under the Group's Sustainability & Responsibility (S&R) Roadmap.

The company could price the issuance at a coupon of 1.375 per cent because of favourable market conditions and a positive reaction from the investors.

The commitment to a dedicated Sustainability-Linked Framework displays the Group's desire to become an active participant in sustainable finance. Sustainalytics provided a Second Party Opinion on this Framework, which is linked with ICMA's 2020 Sustainability-Linked Bond Principles (SLBP) and LMA's 2021 Sustainability-Linked Loan Principles (SLLP).

Hélène de Tissot, EVP Finance, IT and Operations, said: "We are very proud of this inaugural sustainability-linked bond issuance, further emphasizing 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."

Vanessa Wright, Chief Sustainability Officer, 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 emphasize that our ESG ambition is at the heart of our strategy."