FrieslandCampina Issues €300 Million Hybrid Bond to Strengthen Balance Sheet
Source: DairyNews.today
Royal FrieslandCampina N.V. has successfully issued a €300 million hybrid bond, aiming to proactively refinance an existing hybrid bond set for a first reset date in December 2025.
The new issuance saw strong demand from institutional investors, with the final order book exceeding €1.2 billion, underscoring investor confidence in the company.
Hans Janssen, CFO of FrieslandCampina, highlighted the importance of the issuance in reinforcing the company’s financial position: “The strong demand for our hybrid bond confirms the trust in FrieslandCampina. With this issuance, we not only support our balance sheet position but also ensure a broader diversification of our funding sources.”
The hybrid bond carries a 4.85% annual coupon rate until the first reset date on January 23, 2030. It is structured to receive 50% equity and 50% debt treatment by credit rating agencies and will be recognized as equity under IFRS. The bond is expected to receive a BB+ rating from S&P and BBB- from Fitch and will be listed on the Global Exchange Market of Euronext Dublin.
BNP Paribas and Citigroup served as Global Coordinators and Structuring Agents, with ABN AMRO, BNP Paribas, Citigroup, HSBC, and ING acting as Joint Bookrunners for the transaction.
Hans Janssen, CFO of FrieslandCampina, highlighted the importance of the issuance in reinforcing the company’s financial position: “The strong demand for our hybrid bond confirms the trust in FrieslandCampina. With this issuance, we not only support our balance sheet position but also ensure a broader diversification of our funding sources.”
The hybrid bond carries a 4.85% annual coupon rate until the first reset date on January 23, 2030. It is structured to receive 50% equity and 50% debt treatment by credit rating agencies and will be recognized as equity under IFRS. The bond is expected to receive a BB+ rating from S&P and BBB- from Fitch and will be listed on the Global Exchange Market of Euronext Dublin.
BNP Paribas and Citigroup served as Global Coordinators and Structuring Agents, with ABN AMRO, BNP Paribas, Citigroup, HSBC, and ING acting as Joint Bookrunners for the transaction.
