Schneider Electric raises 6 billion euros in bonds to finance PTC acquisition
Following the capital increase announced on October 20, 2026, the Rueil-Malmaison-based group added a bond component of the same amount to finance its acquisition. The maturities are spread from 2028 to 2046.
Debt joins capital increase in financing PTC
Schneider Electric launched on October 26, 2026 a senior bond issuance of 6.0 billion euros, divided into several tranches. The operation was carried out under its EMTN program (Euro Medium Term Note), which governs its medium-term debt issuances.
The securities have an average maturity of 8.2 years and an average coupon of approximately 4.3%. These two parameters summarize the duration and cost of the debt raised, thus the interest charge that the group undertakes to bear over several years.
The transaction is part of the financing of the acquisition of American software publisher PTC Inc., previously announced by the group. It follows the capital increase of 6.0 billion euros carried out in the form of an accelerated placement, without preferential subscription rights for shareholders, and announced by press release on October 20, 2026.
The financing of the acquisition now comprises two components of identical amount: 6.0 billion euros raised in shares and 6.0 billion euros raised in bonds. When the accelerated placement was arranged, it had been indicated that this equity component would be accompanied by future debt issuances.
This mixed structure distributes the effort between two categories of investors. Shareholders were solicited through the capital increase reserved for qualified investors, while bond creditors provide the second part of the funds, remunerated by the coupons detailed by the group for each of the tranches.
Coupons ranging from 4.000% to 5.000% depending on maturity, plus a floating rate tranche
The shortest tranche, of 750 million euros, matures in November 2028. It bears a floating rate, indexed to the 3-month Euribor plus 0.45%.
The other tranches have fixed rates. The one of 1 billion euros, maturing in November 2030, carries a coupon of 4.000% for an implicit rate of 4.084%. The one of 1.25 billion euros, maturing in November 2032, offers a coupon of 4.250% and an implicit rate of 4.320%.
Two tranches of 1.25 billion euros each mature in December 2035 and November 2038, with respective coupons of 4.500% and 4.750%, for implicit rates of 4.543% and 4.760%.
The longest, of 500 million euros, runs until November 2046 with a coupon of 5.000% and an implicit rate of 5.081%.
The grid shows a regular progression of the coupon with duration, from 4.000% for the 2030 maturity to 5.000% for the 2046 maturity. For each fixed rate tranche, the implicit rate is slightly above the coupon.
The highest amounts are concentrated on intermediate maturities, with three tranches of 1.25 billion euros placed between 2032 and 2038. The two ends of the schedule, 2028 and 2046, carry the lowest amounts, which spreads repayments from 2028 to 2046.
An issuance placed during a stock market decline
This placement occurs as Schneider Electric's stock is declining. On October 26, 2026, the share was down 19% over one month, after breaking through support at 235.75 € on October 23, 2026.
The stock's decline continued after the publication, on October 16, 2026, of third-quarter revenue that exceeded expectations, accompanied by a revision upward of an annual objective by the group.
