Renault sets yield at 2.5% for €500M bond offering

The yield is set at 2.5% and the size at €500 million on Renault SA's long-five-year offering of unsecured notes due June 2, 2027. Books are subject, and pricing remains on track for today's business via joint leads CIC, Citi (B&D), Commerzbank, Mizuho and Natixis.

Initial price thoughts were given earlier today at 2.625%-2.750% for an expected €500 million transaction. Books for the deal are sized at more than €1.25 billion, according to the banks.

Proceeds are earmarked to fund general corporate purposes, and the notes are expected to be rated in line with the issuer rating at BB+ and Ba2 from S&P Global Ratings and Moody's, respectively, according to the banks.

The transaction is the French carmaker's third bond offering since losing its investment-grade status in February and April 2020 at Moody's and S&P Global Ratings, respectively. Note, the company's finance and insurance subsidiary, RCI Banque, is still rated investment-grade by both agencies.

Renault's most recently issued bonds — namely its €600 million of 2.5% notes due 2028, which were placed in March — closed Nov. 23 at 100.148 for a 2.473% yield to worst, according to S&P Global Market Intelligence data. Those bonds have sold off slightly this morning, trading in a 99.165/99.800 market at the time of writing, according to Tradeweb prices.

The bonds will be issued off the company's EMTN program and can be redeemed at par, three months prior to maturity. Distribution is Reg-S only and the bonds will feature a short first coupon.