Wines and spirits producer Pernod Ricard announced today it has issued its inaugural €750 million sustainability-linked bond, with terms on the debt tied to performance on its environmental commitments to reduce absolute emissions and decrease water consumption at its distilleries.
Sustainability-linked securities are the fastest growing form of sustainable finance instruments, with attributes including interest payments tied to an issuer’s achievement of specific sustainability targets.
Vanessa Wright, Chief Sustainability Officer, said:
“I am delighted by the success of this issuance, linking the cost of financing to concrete, sustainable targets and our Good Times from a Good Place 2030 strategy. This financial transaction is an amazing opportunity to emphasize that our ESG ambition is at the heart of our strategy.”
For Pernod Ricard’s new bond, which matures in April 2029 and has a coupon of 1.375%, the terms will be linked to two environmental commitments: to reduce the Group’s Scope 1 and 2 absolute greenhouse gas (GHG) emissions, and decrease the water consumption per unit at distilleries.
The company stated that an application will be made for the bonds to be admitted to trading on Euronext Paris and that they are expected to be rated Baa1 by Moody’s and BBB+ by Standard & Poor’s.
Hélène de Tissot, EVP Finance, IT and Operations, said:
“We are very proud of this inaugural sustainability-linked bond issuance, further emphasizing Pernod Ricard’s ESG strategy and ambition. The transaction was very well received, thus demonstrating the markets’ confidence in the Company’s financial strength, strategy and ability to deliver on its ESG targets. This first sustainability-linked bond in the Wine and Spirits sector highlights the strong interest among investors for sustainable finance.”