Kering Issues €750 Million Bond to Bolster Beauty Division Growth

THE WHAT? Kering has announced the successful issuance of a €750 million bond, a strategic move aimed at enhancing financial flexibility to support its expanding beauty portfolio.

THE DETAILS The single-tranche bond carries a 3.125% coupon and matures in 4.5 years. This issuance aligns with Kering’s active liquidity management strategy, providing the group with additional resources to invest in its luxury beauty segment, including brands under Kering Beauté such as Bottega Veneta, Balenciaga, and the recently acquired high-end fragrance house, Creed. The bond’s success reflects investor confidence in Kering’s credit quality, underscored by its ‘BBB+’ long-term rating from Standard & Poor’s.

THE WHY?  As Kering intensifies its focus on the beauty sector, the capital raised through this bond issuance is expected to fund product innovation, marketing initiatives, and potential acquisitions within the cosmetics and personal care space. This financial maneuver supports Kering’s ambition to establish a stronger foothold in the luxury beauty market, leveraging the distinct identities of its fashion houses to create compelling beauty offerings.

Source: Kering

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