Veolia capitalised on the reopening of European markets to take advantage of favourable issuance conditions and complete a record bond placement with three new bond tranches totalling €2.5bn.
Firstly, a 5-year bond for €950m bearing a coupon of 3.2%. Next, an 8-year bond for €900m bearing a coupon of 3.6%, and finally, a 12-year bond for €650m bearing a coupon of 4.0%.
The operation is said to attract more than 570 orders for an overall amount which peaked at €10.5bn.
Given this strong demand, the issuance was executed with new issue concessions compared to the secondary market between -2 and 5 basis points. This high level of oversubscription, the quality of the investors, and the good terms obtained testify to the positive perception of Veolia, its international growth outlook, and its financial solidity.
“This outstanding bond issuance confirms the excellent conditions at which the group can tap the financial markets,” said Emmanuelle Menning, deputy Veolia CEO finance and purchasing.
“The enthusiastic welcome from the market reinforces the strength of Veolia’s positioning as the international leader of ecological transformation. It also attests to the relevance of the GreenUp plan, combining resilience and growth, and the group’s development strategy, including the recently announced acquisition of the Clean Earth company in the US hazardous waste business.”