Veolia has announced that it has taken advantage of the reopening of euro markets to benefit from favorable issuance conditions, completing a record bond placement with three new tranches totaling €2.5 billion.
The utility services group specified that these three tranches include €950 million over 5 years with a coupon of 3.209%, €900 million over 8 years with a coupon of 3.639%, and €650 million over 12 years with a coupon of 4.052%.
The operation attracted more than 570 orders for a total amount exceeding €10.5 billion at its peak. Given the strong demand, the issuance was carried out with new issue premiums over the secondary market ranging from -2 to 5 basis points.
"This high level of oversubscription, the quality of the investors, and the very favorable terms obtained reflect the extremely positive perception of Veolia's credit and its international growth prospects, as well as its financial solidity," the company stated.
Veolia Environnement is the world leader in environmental management services. Net sales break down by activity as follows:
- water-related services (40.4%; No. 1 worldwide): water resources management, drinking water distribution and delivery, wastewater collection, treatment and recovery, engineering, design, construction of water treatment facilities and customer relationship management, etc.;
- waste management services (35%; no. 1 worldwide): collection, treatment and recycling of liquid, solid, non-hazardous and hazardous waste, waste treatment and recovery through composting, energy recovery from waste, etc. Veolia Environnement also provides urban waste management services (maintenance and cleaning of public spaces, provision of mechanized street cleaning and façade treatment services), maintenance of industrial sites, and dismantling of industrial facilities and equipment at the end of their useful life;
- energy services (24.6%; No. 1 in Europe): delegated management of urban heating and air conditioning networks, management of thermal and multi-technique services (operation of heating systems, facility design, construction, and maintenance, etc.) and industrial services (industrial process analysis, production equipment operation, service, and maintenance), general management of buildings and public lighting.
Net sales are distributed geographically as follows: France (19.7%), the United States (10.9%), Poland (6.8%), the United Kingdom (6.8%), Germany (6.8%), Spain (6.3%), Australia (4.7%), the Czech Republic (4.7%), Morocco (2.8%), Italy (2.6%), Belgium (2.4%), China (2.2%), Hungary (1.8%), Chile (1.8%), Hong Kong (1.4%), Japan (1.3%), Slovakia (1.2%) and other (15.8%).
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