Luxury group Kering has recently raised €1.5 billion through a successful bond issue, signaling its upward trajectory after the challenges faced during the past two years of the pandemic. Despite the uncertain economic environment, Kering reported an impressive growth of 27% in Q1 2022, with revenue reaching €4.956 billion. The funds generated from the bond issuance will be used in part to finance the acquisition of eyewear brand Maui Jim.

The bond issue consists of two tranches, with each tranche valued at €750 million. The first tranche is a three-year bond offering a 1.25% coupon, while the second tranche is an eight-year bond with a 1.875% coupon. Kering has highlighted in a press release that this operation aims to enhance its funding flexibility by refinancing existing debt and partially funding the Maui Jim acquisition.

Kering’s subsidiary, Kering Eyewear, has been making headlines in the industry recently with its acquisition of Danish brand Lindberg in July 2021. Building on this momentum, the luxury group announced the acquisition of Maui Jim last month. Recognized as the world’s largest independently owned high-end eyewear brand and holding a leading position in North America, Maui Jim’s exact transaction value has not been disclosed by Kering.

The success of this bond issue reflects the confidence investors have in Kering’s credit quality. Kering’s long-term debt is rated ‘A’ with a stable outlook by Standard & Poor’s. Apart from establishing financial stability, this bond issuance may also serve as a strategic move for the group, potentially opening doors for future acquisitions.

To learn more about Kering and its recent activities, follow the links below:

1. Kering Official Website
2. Business of Fashion: Kering Acquires Maui Jim