FrieslandCampina has issued a €300 million hybrid bond to refinance the outstanding hybrid bond. The old one matures in December 2025. FrieslandCampina has decided to take action now. The new bond was positively received and attracted more than €1,2 billion in orders, which was significantly oversubscribed.
Financial CEO Hans Janssen sees the high demand for the new hybrid bond loan as confirmation of confidence in FrieslandCampina. "With this issue, we not only support our balance sheet position, but also ensure a broad diversity in our financing sources." The hybrid bond has a coupon interest of 4,85% per year until the first interest review date on 23 January 2030, making it more expensive than the old one of 2,85%, but the entire financial market has also changed.
The bond loan is called hybrid because it is 50% equity and 50% debt. This is also how credit rating agencies treat the facility. FrieslandCampina expects it to be rated BB+ by S&P and BBB- by Fitch. The listing is on the Global Exchange Market of Euronext Dublin.