Rexel places €600M of 7-year sustainability-linked bonds; terms

Rexel SA has placed a €600 million offering of seven-year (non-call three-year) unsecured sustainability-linked bonds that priced at par, to yield 2.125%, via joint global coordinators BNP Paribas (B&D), CIC and ING.

Price talk is in the 2.25% area. Proceeds from the offering, which is the electrical component supplier's second SLB issue following an identical maturity sold in April, are to be used to redeem the group's 2.75% senior notes due June 2026.

Ratings are BB/Ba2 (positive/stable) and unsecured ratings are BB-/Ba3. Bayern LB, BBVA, Commerzbank and Natixis were additional joint bookrunners, with Danske Bank and Standard Chartered as co-lead managers.

The sustainability-linked criteria are identical to the company's previous key performance indicator-linked bond deal. The first sustainability performance target is linked to a 23% reduction, versus 2016 levels, in Scope 3 greenhouse gas emissions intensity from the use of products sold by 2023. The second target is a 23.7% reduction in Scope 1 and 2 greenhouse gas emissions by 2023 versus the 2016 baseline.

A 25-basis-point step-up will apply to both the coupon and the call price if both targets are missed. The company's sustainability-linked framework has a second-party opinion from Vigeo Eiris.

Paris-based Rexel is a global distributor of low- and ultra-low-voltage electrical products.

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