Richemont places €3.75 billion inaugural Euro denominated bond
15 Mar 2018
Richemont, the Swiss luxury goods group, announces that it has successfully placed its inaugural Euro denominated bond transaction today with a volume of €3.75 billion, following a roadshow with fixed income investors across Europe.
The transaction launched on 15 March with three tranches maturing in 2026, 2030 and 2038. The notes are priced with a coupon of 1.0% for the €1.5bn 8 year maturity note, 1.5% for the €1.25bn 12 year note and 2.0% for the €1.0bn 20 year note.
The notes are expected to receive a rating of A+ (stable) in line with the rating assigned to Compagnie Financière Richemont SA by S&P Global Ratings.
The net proceeds of the issue of the notes will be used for the Group’s general corporate purposes, which may include funding the acquisition of the ordinary shares of YOOX NET-A-PORTER GROUP S.p.A. (YNAP), in whole or in part, pursuant to the YNAP voluntary public tender offer.
Commenting on the bond transaction, Johann Rupert, Chairman of Richemont, said:
“This transaction positions Richemont with European bond investors for the first time. We are pleased at the support the inaugural bond issue has received from investors, which demonstrates confidence in the quality of our assets and strength of our balance sheet. In line with Richemont’s prudent balance sheet policy, we have taken advantage of the low interest rate environment to raise long-term debt. We will use the funds to invest in the development of our businesses.”
Richemont will make an application for the notes to be listed on the regulated market of the Luxembourg Stock Exchange.
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in YOOX NET-A-PORTER GROUP, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10'647 million, operating profit of € 1'764 million and profit for the year of € 1'210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.