Pernod Ricard, a global leader in the spirits and wine industry, successfully completed a bond issuance, raising an impressive €1.5 billion. The funds raised through this issuance will be utilized for the general corporate purposes of the company, paving the way for further growth and expansion.
The bond issuance was divided into two tranches, with a maturity date of 7 November 2030 for one tranche and 7 May 2034 for the other. Pernod Ricard managed to secure favorable terms for the bonds due to the positive response from investors and the conducive market conditions. The coupon rates were set at 3.375% for the 6.5-Year tranche and 3.625% for the 10-Year tranche.
This successful issuance is a testament to Pernod Ricard’s solid financial standing, as the company’s long-term senior debt is rated Baa1 by Moody’s and BBB+ by Standard & Poor’s. The bonds are expected to receive similar ratings.
To ensure a smooth placement, the bonds were offered exclusively to qualified investors. Pernod Ricard intends to seek admission for the bonds to be traded on Euronext Paris, providing increased liquidity and accessibility for investors.
Citigroup, Credit Agricole CIB, Deutsche Bank, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan, Natixis, and Société Générale acted as the Joint Bookrunners for this bond issuance, further reinforcing Pernod Ricard’s strong relationships with leading financial institutions.
Pernod Ricard is committed to the long-term development of its brands while upholding its values of authenticity, inclusivity, and environmental responsibility. The company boasts an impressive portfolio of renowned brands, including Absolut vodka, Chivas Regal, Jameson Irish whiskey, and Mumm and Perrier-Jouët champagnes.
As Pernod Ricard continues to make strides in the spirits and wine industry, this successful bond issuance sets the stage for further innovation and market expansion. The company’s consolidated sales reached €12,137 million in fiscal year FY23, solidifying its position as a key player in the global market.
Contact:
Florence Tresarrieu / Global SVP Investor Relations and Treasury +33 (0)1 70 93 17 03
Edward Mayle / Investor Relations Director +33 (0)6 76 85 00 45
Ines Lo Franco / Investor Relations Manager +33 (0)6 49 10 33 54
Emmanuel Vouin / Head of External Engagement +33 (0)1 70 93 16 34
Pernod Ricard’s recent bond issuance of €1.5 billion is expected to drive the company’s growth and expansion in the spirits and wine industry. The funds raised through this issuance will be used for general corporate purposes, allowing the company to invest in innovation, marketing, and strategic acquisitions.
One key advantage of this bond issuance is the favorable terms secured by Pernod Ricard due to the positive response from investors and the current market conditions. The coupon rates of the bonds, set at 3.375% for the 6.5-Year tranche and 3.625% for the 10-Year tranche, reflect the confidence of investors in the company’s financial standing.
Pernod Ricard’s solid financial position is evident from its long-term senior debt ratings of Baa1 by Moody’s and BBB+ by Standard & Poor’s. These ratings indicate that the company is considered to have a moderate credit risk and are expected to further reinforce the attractiveness of the bonds.
One potential challenge or controversy associated with the subject is the impact of global market trends on the spirits and wine industry. The industry has seen shifts in consumer preferences and behavior, with increased demand for premium and craft spirits, as well as a growing interest in sustainability and environmental responsibility. Pernod Ricard will need to navigate these trends and address any associated challenges to stay competitive and meet evolving consumer expectations.
In terms of market trends, the spirits and wine industry is expected to continue growing, particularly in emerging markets such as Asia-Pacific and Latin America. The consumption of premium and high-end spirits is expected to increase, driven by a rising middle class and changing consumer tastes. Pernod Ricard’s strong brand portfolio, which includes popular brands like Absolut vodka, Chivas Regal, and Jameson Irish whiskey, positions the company well to capitalize on these market trends.
Additionally, the company’s commitment to authenticity, inclusivity, and environmental responsibility aligns with the growing demand for sustainable and socially responsible products. Pernod Ricard’s focus on environmental sustainability and responsible consumption is likely to resonate with consumers who prioritize these values.
Overall, Pernod Ricard’s successful bond issuance highlights its strong financial position and sets the stage for further growth and expansion in the spirits and wine industry. The company’s strategic focus on innovation, brand development, and responsible business practices positions it well to navigate the challenges and capitalize on the opportunities in the evolving market.
For more information about Pernod Ricard and its brands, visit their official website at pernod-ricard.com.