In March 2018, Danone announced the successful launch of a €300 million bond to finance and refinance projects that include positive social impacts. This innovative Social Bond is the first to be issued by a multinational aligned with the new Social Bond Principles, as set out in June 2017 by the International Capital Market Association.
This pioneering bond issuance continues to support Danone’s long-term ambition to lead the way in creating and sharing sustainable value. It attracted significant appetite from investors focused on ESG and was subscribed at attractive market conditions.
Proceeds are allocated to projects with positive social impact within Danone’s ecosystem, including:
- Research and Innovation for Advanced Medical Nutrition
- Social inclusiveness projects in our value chain
- Responsible farming and agriculture program
- Entrepreneurship financing
- Quality healthcare and parental support for Danone's employees
The bond issue consists of a €300 million euro-denominated senior note with a 7-year maturity and offering a 1.00% coupon, due March 2025. The settlement took place on March 26, 2018 and the bond is listed on Euronext Paris.
Vigeo Eiris, an ESG rating agency, has delivered an independent second opinion on the sustainability credentials and management of this social bond (available here).
For more information on our social bond, refer to Danone Social Bond Framework and to our Social Bond Reporting.
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