Valeo’s new €600 million green bond issue anchored by €150 million investment from EIB

By Mary-Katherine Stinson

Lexington, Ky., Oct. 6 – Valeo SE’s new €600 million green bond issue (Baa3/BB+) was anchored by European Investment Bank, which subscribed for €150 million, making up one-quarter of the issue, according to a press release.

The 5 7/8% senior bonds due April 2029 are Valeo’s inaugural green offering, according to a market source.

The bonds priced on Thursday at 99.894 to yield 5.907%, or at mid-swaps plus 250 basis points.

Price talk was in the mid-swaps plus 280 bps area, or the equivalent of the 6¼% area.

The bonds will be callable with a Bunds plus 50 bps make-whole premium. There is a three-month par call option before the maturity date.

BNP Paribas (billing and delivery) and Credit Agricole were joint global coordinators for the Regulation S offering.

Citi, MUFG, Natixis and Societe Generale were active bookrunners.

The book had orders for over €1.4 billion.

Proceeds will be applied to eligible green or sustainable projects.

Valeo is a Paris-based automotive supplier.

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