2023-11-09 17:24:32
If you go shopping, you can’t ignore Nestlé. Whether in the confectionery aisle, the beverage department, baby food, pet food or the refrigerated shelf – the Swiss company is represented everywhere. The new bonds that Nestlé issued last Tuesday were as popular as Kitkat and Smarties. According to Bloomberg, the two tranches, each worth 500 million euros, were twice oversubscribed. The Swiss food company pays a coupon of 3.5 percent and 3.75 percent for the two promissory notes with terms of seven and twelve years respectively. The low denomination of 1,000 euros has also made the bond interesting for private investors.
The European primary market is currently recovering from the weakest October since 2014. The volatility of the past few weeks had spooked issuers. Investors are slowly starting to dare to return to the bond market. Last Monday was the busiest day on European primary markets in almost six weeks. “Quality appeared to play a larger role in recent transactions,” say JP Morgan strategists led by Matthew Bailey. More new bonds were issued on Monday and Tuesday alone than in any week of October.
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