The proceeds from this issuance, combined with cash on hand, are intended to repurchase or redeem existing debt securities. In parallel, Atos plans to cancel its existing RCF and bonding facility, replacing them with a new 110 million euro RCF.

'Atos is seizing a rare window of opportunity to tap the market, albeit with scaled-back ambitions. Initially, the group was targeting a comprehensive debt refinancing with a coupon between 7.5% and 8%,' noted Oddo BHF.

The brokerage estimates, however, that with debt priced at approximately 8.5%, Atos could achieve annual interest expense savings of around 40 million euros, potentially boosting 2027 pre-tax profit by 12%.

While viewing the move as a broadly positive initiative for Atos, Oddo BHF believes the equity upside from this transaction is difficult to pinpoint, noting that it will take more than two years for the impact to become visible on the net debt trajectory.

'Given that the growth recovery trajectory remains to be proven, we maintain our 'neutral' rating on the stock,' stated the lead analyst, who also reiterated a price target of 46 euros.