Bureau Veritas Secures €500 Million Bond for Future Growth

Bureau Veritas Issues €500 Million Bond to Enhance Financial Position

Bureau Veritas, a global leader in testing, inspection, and certification (TIC) services, has successfully completed a significant bond issuance of EUR 500 million. This bond, which has a maturity date established for November 2031, is set with a competitive coupon rate of 3.125%.

Investor Confidence and Market Demand

The bond issuance demonstrated remarkable demand, being oversubscribed by an impressive factor of 2.3. This overwhelming interest allowed Bureau Veritas to finalize pricing that was notably below initial price indications. Such a response from investors not only highlights their trust in the Bureau Veritas business model but also emphasizes confidence in its LEAP | 28 strategy and robust credit profile, which has been assigned an A3 rating by Moody’s.

Strategic Use of Proceeds from the Bond Issuance

The funds raised from this bond issuance will be strategically directed toward capitalizing on favorable market conditions and refinancing existing debts, which may include portions of the company’s previously issued US Private Placement (USPP) debts. This financial maneuvering is essential for strengthening Bureau Veritas's capital structure and supporting future growth initiatives.

Upcoming Trading of Bonds

The bonds are expected to be admitted for trading on Euronext Paris, with this trading anticipated to commence on the settlement date likely falling around mid-November 2024. The proactive steps taken by Bureau Veritas ensure it is well-positioned to leverage the current market dynamics.

About Bureau Veritas

Bureau Veritas stands out as a leader in inspection, certification, and laboratory testing services. The organization is driven by a powerful purpose: to shape a world of trust by guaranteeing responsible progress. Founded in 1828, Bureau Veritas has grown to employ around 83,000 professionals operating in 140 countries, who are dedicated to helping clients meet demands in quality, health and safety, environmental protection, and sustainability.

Commitment to Excellence and Sustainability

Bureau Veritas is committed to providing innovative solutions that enable its clients to navigate ever-changing market landscapes successfully. Its focus on excellence and sustainability positions the company as a choice partner for clients across various industries.

Conclusion

As a publicly traded company listed on Euronext Paris with ties to key indices such as CAC 40 ESG, Bureau Veritas (Paris: BVI) continues to demonstrate exemplary financial management and market agility. The successful bond issuance is another testament to its commitment to fostering lasting trust and supporting sustainable progress in various sectors.

Frequently Asked Questions

What is the purpose of the bond issued by Bureau Veritas?

The bond issuance aims to improve financial positioning, allowing for refinancing of existing debts and taking advantage of favorable market conditions.

How large is the bond issuance completed by Bureau Veritas?

Bureau Veritas successfully issued a bond worth €500 million with a maturity scheduled for November 2031.

What does the strong oversubscription of the bond indicate?

The oversubscription (2.3 times) indicates strong investor confidence in Bureau Veritas's business model and credit quality.

When will the bonds be traded on the stock market?

Bonds are expected to commence trading on Euronext Paris, with the settlement date anticipated around November 15, 2024.

What is the historical background of Bureau Veritas?

Founded in 1828, Bureau Veritas has extensive experience in inspection, certification, and laboratory testing, employing around 83,000 staff globally.

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