Valeo launches €700 million seven-year sustainability-linked bond to yield mid-swaps plus 125 bps

By Rebecca Melvin

Concord, N.H., July 27 – Valeo launched a €700 million seven-year sustainability-linked bond (expected ratings: Baa3/BB+) to yield mid-swaps plus 125 basis points, according to a market source on Tuesday.

Pricing of the senior notes came below yield guidance of mid-swaps plus 135 bps area and initial price talk in the mid-swaps plus 155 bps area.

The order book at the time guidance was released was in excess of €2.1 billion.

BNP Paribas and Credit Agricole CIB are global coordinators of the Regulation S deal, and they are also active bookrunners together with CIC, Mizuho, Natixis and Societe Generate.

The notes have a make-whole call and three-month par call as well as a change-of-control put and clean-up call.

The sustainability step up is tied to Valeo’s ability to achieve, by Dec. 31, 2025, a reduction in its total carbon footprint.

The automotive supplier is based in Paris.

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