Danone’s debut social bond attracts healthy appetite

Friday, March 23, 2018

By Reuters Staff

French food group Danone said on Monday it had successfully launched its inaugural 300 million euro ($370 million) seven-year social bond, reflecting growing appetite among investors for ethical and responsible investing.

Proceeds will be used to fund projects backing notably responsible farming, local projects dedicated to empowering communities and social entrepreneurs or healthy food entrepreneurship, it said in a statement.

The bond issue consists of a 300 million euro denominated senior note with a seven-year maturity and offering a 1.00 percent coupon due March 2025.

“It attracted significant appetite for investors focused on ESG (Environmental, Social and Governance) and was subscribed at attractive market conditions,” it said.

Danone, under the lead of CEO Emmanuel Faber, has been pushing on with a dual financial and social agenda, which – like that of many blue-chip companies – aims to not only boost shareholder value and profit but also meet other targets on the environment and social policies.

Photo courtesy of A’Melody Lee.

Source: Reuters (link opens in a new window)

ESG, impact investing