Luxury goods group plans to use proceeds for business development and shoring up its balance sheet
Johann Rupert’s Richemont, the luxury goods group that owns the Cartier brand, has sold €2bn of bonds, and will use the proceeds for further business development and weathering the economic fallout of the Covid-19 pandemic.
The bonds are priced with a coupon of 0.75% for the €500m eight-year note, 1.125% for the €850m 12-year note and 1.625% for the €650m 20-year note. “The significant interest from investors demonstrates recognition of our strong cash-generation profile and unique business model around Maisons with centuries of heritage, as well as digital native businesses,” Richemont CFO Burkhart Grund said.
“Whilst Richemont has a robust balance sheet and more than adequate cash resources, we view it prudent to secure additional liquidity to weather potentially tougher times ahead,” Grund said. Richemont, which has a market capitalisation of about R531bn, recently reported that the pandemic had pummelled sales in Asia earlier in 2020, but it noted a promising recovery in China.
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