REG - Compagnie St-Gobain - Issue of Debt

Compagnie de Saint Gobain SAAnnouncement

03/08/2022 07:16

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RNS Number : 6871U  Compagnie de Saint-Gobain  02 August 2022

 

 

 

SAINT-GOBAIN STRENGTHENS ITS FINANCING

AND ITS SUSTAINABILITY COMMITMENT

 

 

Saint-Gobain successfully priced today a triple tranche EUR 1.5 billion bond
issue consisting of:

 

·   EUR 500 million with a   3 year maturity and a 1.625% coupon

·   EUR 500 million with a  6 year 1  (#_ftn1) maturity and a 2.125%
coupon

·   EUR 500 million with a 10 year maturity and a 2.625% coupon

 

The 10 year tranche is a Sustainability-Linked Bond (SLB) indexed to
sustainable performance indicators.

 

With this transaction Saint-Gobain seized a window of market opportunity to
extend the average maturity of its debt with mid to long term funding. This
success underlines the relevance of Saint-Gobain's strategic positioning as
worldwide leader in light and sustainable construction, the strong execution
of its "Grow & Impact" strategy and its excellent financial performance.

 

Over 200 investors showed their confidence in the Group's credit quality.
Saint-Gobain benefited from the recent decrease in rates and the 5 times
oversubscription of the targeted amount to reach an attractive funding cost,
without any new issue premium.

 

Saint-Gobain's long-term senior debt is rated BBB (positive outlook) by
Standard & Poor's and Baa1 (stable outlook) by Moody's.

 

Sreedhar N., Chief Financial Officer of Saint-Gobain, commented:

"Sustainable growth is at the heart of Saint-Gobain's business model. The
issuance of a Sustainability-Linked Bond demonstrates the strength of
Saint-Gobain's commitments set out in its ESG 2  (#_ftn2) roadmap. The Group
aims in particular to tackle the big energy and environmental challenges faced
by the world, with its contribution to reduce CO(2) emissions in its
operations and also decarbonize construction and industrial activities through
its sustainable solutions".

 

The SLB is linked to two important indicators of Saint-Gobain's sustainability
roadmap, with ambitious targets in relation to the base year 2017:

-  Reduce by 33% the absolute Scope 1 and 2 CO(2) emissions by 2030;

-  Achieve an 80% reduction of non-recovered production waste by 2030.

A 0.375% step-up would apply on the 2032 coupon for each one of these
indicators if their respective target was not met.

 

Crédit Agricole CIB, Goldman Sachs Bank Europe SE and Société Générale
(sole structuring advisor on the SLB tranche) acted as global coordinators of
the whole transaction. BBVA, Barclays, Commerzbank, Deutsche Bank, ING,
Mizuho, SMBC, Standard Chartered Bank AG and Unicredit, as well as the
coordinators, acted as bookrunners on the different tranches.

 

 

ABOUT SAINT-GOBAIN

Worldwide leader in light and sustainable construction, Saint-Gobain designs,
manufactures

and distributes materials and services for the construction and industrial
markets. Its integrated solutions for the renovation of public and private
buildings, light construction and the decarbonization

of construction and industry are developed through a continuous innovation
process and provide sustainability and performance. The Group's commitment is
guided by its purpose, "MAKING THE WORLD A BETTER HOME".

€44.2 billion in sales in 2021

166,000 employees, locations in 76 countries

Committed to achieving Carbon Neutrality by 2050

For more information about Saint-Gobain,

visit www.saint-gobain.com and follow us on Twitter @saintgobain

 

 

 

 

 

 

 

 

 

 

 

 1  (#_ftnref1) Maturity : June 10, 2028

 2  (#_ftnref2) ESG: Environment, Social, Governance

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