L'Oréal Issues 3 Billion Euros in Bonds Across Three Tranches
L'Oréal has announced the successful placement of a bond issue totaling 3 billion euros, aimed at financing general corporate needs and the acquisition of Kering Beauté.
Details of the Bond Issue
According to the press release, L'Oréal structured its bond issue into three tranches. The first tranche amounts to 850 million euros with a 2-year maturity and a variable coupon rate of 3-month Euribor plus 20 basis points per annum. The second tranche, worth 1,000 million euros, has a 5-year maturity with a fixed coupon of 2.750% per annum. Finally, the third tranche is for 1,150 million euros, with a 10-year maturity and a fixed coupon of 3.375% per annum.
Use of Proceeds and Bond Ratings
According to the company, the net proceeds from this bond issue will be used for L'Oréal's general corporate purposes, including partly financing the acquisition of Kering Beauté. The issued bonds have received AA (Stable) ratings from S&P and Aa1 (Stable) from Moody's. They are expected to be admitted for trading on Euronext Paris on November 19, 2025.
Coordination and Support
The coordination of the bond issue was managed by Société Générale, Natixis, JP Morgan, and Citi, while Standard Chartered, ING, Barclays, and HSBC served as bookrunners. L'Oréal, a major player in the beauty industry, continues to develop its global strategy, supported by these financial operations.
