Kering takes a significant step forward in its financial strategy by issuing bonds in sterling for the first time. This initiative is designed to strengthen the luxury giant’s budgetary flexibility while consolidating its market position.
Kering diversifies its sources of financing with its first ever bond issue in English currency, for a total amount of £800 million (around 915 million euros). The move is part of the Group’s active liquidity management strategy, illustrating its strategic commitment to optimizing its financial structure.
Bonds are securities used by companies or governments to borrow money on the financial markets. When you buy a bond, you receive interest in return for the loan – this is known as the “coupon” – and, at maturity, the issuer repays the amount borrowed.
This issue is divided into two distinct tranches, the first worth £400 million over 3 years, with a coupon of 5.125%, and the second for the same amount but with a maturity extended to 9 years, with a coupon of 5%.
In a press release, the luxury goods group headed by François-Henri Pinault emphasized the enthusiasm of bond investors for this offer. This support reflects the market’s confidence in Kering’s creditworthiness. Kering notes that its long-term debt is rated ‘A’ by Standard & Poor’s, with a stable outlook.
Previous operation
Last August, Kering had already carried out a major operation by issuing a 3.8 billion euro bond. This was specifically intended to finance the acquisition of perfumer Creed.
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