Danone successfully launches a €1.3 billion dual-tranche bond issue

Rhea-AI Summary

Danone (OTC:DANOY) has successfully launched a €1.3 billion dual-tranche bond issue. The offering consists of a €800 million 2-year floating rate notes with Euribor 3 months +27 basis points coupon and €500 million undated deeply subordinated fixed rate resettable notes with 3.95% fixed resettable coupon and first call date on September 8, 2032.

The proceeds will be used for general corporate purposes, with the subordinated notes refinancing existing €500 million notes callable in September 2026. The settlement is expected on September 8, 2025, with listing on Euronext Paris. The undated subordinated notes will be treated as full equity under IFRS and 50% equity by rating agencies.

Positive

• Bond issue was widely subscribed by diverse investors, showing strong market confidence
• Enhanced funding flexibility and extended debt maturity
• Subordinated notes receive favorable equity treatment from rating agencies and IFRS

Negative

• Increased debt obligation with €1.3 billion new bonds
• Higher interest rate of 3.95% on subordinated notes compared to current market rates

Press release – Paris, September 1, 2025, at 6:30 PM CEST

Danone successfully launches a €1.3 billion dual-tranche bond issue

        
Danone announces it has launched today a €1.3 billion dual-tranche bond issue, consisting of:

• a tranche of 2-year floating rate notes of €800 million (coupon of Euribor 3 months +27 basis points);
• a tranche of undated deeply subordinated fixed rate resettable notes of €500 million (fixed resettable coupon of 3.95% with a first call date on 8 September 2032).

Proceeds of this issue will be used for the general corporate purposes, including, for the undated deeply subordinated notes, to refinance Danone's existing €500 million undated deeply subordinated fixed rate resettable notes callable in September 2026 (ISIN: FR0014005EJ6).

The undated deeply subordinated notes will be fully accounted as equity in accordance with IFRS standards and will be treated as 50% equity by Moody’s and Standard & Poor’s in their credit metrics.

The settlement is expected to take place on September 8, 2025, and the bonds will be listed on Euronext Paris.

In line with the company’s active liquidity management, this issue enables Danone to enhance its funding flexibility while extending the maturity of its debt.

The bond issue was widely subscribed by a diversified investor base, confirming the high confidence in Danone’s business model and credit profile.

The prospectus containing the terms and conditions of the notes will be available on Danone’s website at the following address: Debt & Rating | Danone Group

About Danone (www.danone.com)

Danone is a leading global food and beverage company operating in three health-focused, fast-growing and on-trend Categories: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With a long-standing mission of bringing health through food to as many people as possible, Danone aims to inspire healthier and more sustainable eating and drinking practices while committing to achieve measurable nutritional, social, societal and environment impact. Danone has defined its “Renew” strategy to restore growth, competitiveness, and value creation for the long-term. With over 90,000 employees, and products sold in over 120 markets, Danone generated €27.4 billion in sales in 2024. Danone’s portfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including AQUA, Blédina, Bonafont, Cow & Gate, Mizone, Oikos and Silk). Listed on Euronext Paris and present on the OTCQX platform via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Moody’s and Sustainalytics, as well as MSCI ESG Indexes, FTSE4Good Index Series, Bloomberg Gender Equality Index, and Access to Nutrition Index. Danone’s ambition is to be B Corp^TM certified at global level at the end of 2025.

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FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning Danone that are subject to risks and uncertainties. Generally, you can identify these forward-looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”, “foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”, “will”, “could”, “predict”, “continue”, “convinced” and “confident,” the negative or plural of these words and other comparable terminology or by using future dates. Forward-looking statements in this press release include but are not limited to predictions of future activities, operations, direction, performance and results of Danone.

These forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of risks and uncertainties, please refer to the “Risk Factor” section of Danone’s Universal Registration Document (the current version of which is available at www.danone.com).

Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell or a solicitation of an offer to buy Danone securities

Attachment

• prdanone010925

FAQ

What is the size and structure of Danone's September 2025 bond issue?

Danone issued a €1.3 billion dual-tranche bond, consisting of €800 million in 2-year floating rate notes and €500 million in undated deeply subordinated fixed rate notes.

What is the interest rate on Danone's new 2025 bond tranches?

The 2-year floating rate notes have a coupon of Euribor 3 months +27 basis points, while the undated subordinated notes have a fixed resettable coupon of 3.95%.

When will Danone's new 2025 bonds be settled and listed?

The bonds will be settled on September 8, 2025 and will be listed on Euronext Paris.

How will Danone use the proceeds from its 2025 bond issue?

The proceeds will be used for general corporate purposes, with the subordinated notes specifically refinancing existing €500 million notes callable in September 2026.

How will the new subordinated notes impact Danone's financial statements?

The undated subordinated notes will be treated as 100% equity under IFRS and as 50% equity by Moody's and Standard & Poor's in their credit metrics.