Capgemini Secures €4 Billion Bond Issue to Boost Growth

Capgemini Successfully Prices a €4.0 Billion Bond Issue

Capgemini has achieved a significant milestone in its financial strategy by successfully pricing a €4.0 billion bond issuance. This offering, structured in four separate tranches, showcases the company's robust market presence and the unwavering confidence that investors have in its business model.

Details of the Bond Issuance

The bond issuance was comprised of the following tranches:

• €1 billion in 2-year notes associated with a floating-rate tied to the 3-month Euribor, plus a margin of 0.30% (the “2027 Bonds”)
• €0.5 billion in 3-year notes carrying a fixed coupon rate of 2.50% and issued at 99.806% (the “2028 Bonds”)
• €1.25 billion in 6-year notes with a coupon of 3.125%, issued at 99.409% (the “2031 Bonds”)
• €1.25 billion in 9-year notes featuring a coupon of 3.50%, issued at 99.077% (the “2034 Bonds”)

This bond offering saw remarkable interest, being oversubscribed by about 3.2 times, illustrating the strong demand for Capgemini's securities.

Investor Confidence and Strategic Uses of Proceeds

Nive Bhagat, Capgemini's Chief Financial Officer, expressed optimism about the bond issuance, stating, "This bond issuance attracted strong interest from investors, demonstrating their confidence in Capgemini’s business model and the quality of its financial profile. It also illustrates their trust in our strategy as we create a leader in Intelligent Operations to address the fast-growing market of Agentic AI-driven transformation of clients’ business processes.”

The proceeds from this bond issuance will primarily be directed towards financing the acquisition of WNS, confirmed on July 7, and for refinancing existing financial debt, as well as general corporate purposes. Significantly, this issuance will also allow Capgemini to cancel its bridge loan related to the acquisition.

Financial Ratings and Future Outlook

The bonds are anticipated to receive a strong rating of BBB+ from Standard & Poor’s, reflecting Capgemini's impressive financial standing and commitment to managing its debt effectively.

Who is Capgemini?

Capgemini is not just a company; it’s a global leader in business and technology transformation, playing a pivotal role in helping organizations successfully navigate their dual transition towards a digital and sustainable future. The company employs around 350,000 talented professionals across more than 50 nations, bringing a wealth of collective expertise to the table.

With a legacy spanning over 55 years, Capgemini has cemented its reputation as a trusted partner for businesses seeking to leverage technology to meet a wide array of operational needs. By offering comprehensive services that span from strategic planning to engineering, Capgemini empowers its clients to harness the potential of AI, cloud computing, and data analytics. In the recent financial year, the company reported global revenues of €22.1 billion, underscoring its growth and stability in a competitive market.

Frequently Asked Questions

What is the total amount raised from the bond issuance?

Capgemini successfully priced a total of €4.0 billion through its recent bond issuance.

How many tranches did the bond issuance comprise?

The bond issuance included four distinct tranches aimed at different maturities and interest rates.

What will the proceeds of the bond issuance be used for?

The proceeds will finance the acquisition of WNS, refinance existing debt, and support general corporate purposes.

What is the expected credit rating for the newly issued bonds?

The bonds are expected to receive a BBB+ rating from Standard & Poor’s, reflecting Capgemini's solid financial profile.

Who can investors contact for further information?

Investors can reach out to Vincent Biraud at Capgemini for inquiries related to investor relations.

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