Bureau Veritas's EUR700m Bond Issuance: Strategic Capital Deployment and Long-Term Value Creation Under LEAP | 28 Strategy

Bureau Veritas's recent EUR700 million bond issuance, maturing in October 2033 with a coupon rate of 3.375%, underscores the company's disciplined approach to capital deployment and its alignment with long-term strategic objectives. The transaction, oversubscribed 2.4 times and assigned an A3 rating by Moody'sBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1], reflects robust investor confidence in the firm's credit profile and growth trajectory. Proceeds from the bond are earmarked for general corporate purposes under the LEAP | 28 strategic plan, a framework designed to accelerate value creation through portfolio optimization, margin expansion, and sector-specific innovationBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1].

Strategic Context: LEAP | 28 and 2024 Performance

Bureau Veritas's LEAP | 28 strategy, launched in March 2024, is anchored on three pillars: a focused portfolio, performance-led execution, and an evolved people modelBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1]. In its first year, the strategy delivered 10.2% organic revenue growth and 38 basis points of margin improvement at constant currency, alongside a 17.0% increase in adjusted earnings per shareBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1]. This performance was driven by aggressive portfolio management, including 10 acquisitions and two divestments in 2024. Notable acquisitions, such as IDP Group in Spain and APP Group in Australia, strengthened the company's leadership in the Buildings & Infrastructure segment, while the EUR 30 million acquisition of Contec AQS in Italy expanded its foothold in industrial servicesBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1].

The bond issuance complements these efforts by providing liquidity for further strategic acquisitions and operational investments. For instance, the company's early 2025 outlook anticipates mid-to-high single-digit organic revenue growth, supported by its focus on sustainability services and energy transition sectors, particularly in Marine & Offshore and Industry divisionsBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1].

Capital Allocation and Financial Flexibility

Bureau Veritas has demonstrated a clear commitment to optimizing its capital structure. In 2024, the company executed a EUR 200 million share buyback programBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1] and issued a EUR 500 million bond in November 2024 to refinance existing debt, including US Private PlacementsBureau Veritas successfully completes the bond issuance of EUR 500 million with a maturity in November 2031^[2]. The EUR700 million 2033 bond, with its favorable pricing below initial indications, further strengthens the firm's financial flexibility while reducing refinancing risks. The oversubscription—2.4 times the offering size—highlights investor appetite for the company's strategic clarity and stable cash flow generationBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1].

The proceeds will also support the company's active portfolio management. By divesting non-core businesses (e.g., generating EUR 165 million in annualized revenue from two exits in 2024Bureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1]), Bureau Veritas reallocates capital to high-growth areas such as cybersecurity and consumer products services technologyBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1]. This approach not only enhances returns on invested capital but also aligns with broader industry trends toward digital transformation and sustainability.

Long-Term Growth and Sector Positioning

The LEAP | 28 strategy emphasizes creating new market strongholds in emerging sectors. Bureau Veritas has already made strides in renewables and cybersecurity, with early growth in energy transition services. The bond's long maturity (10 years) provides a stable funding base for these initiatives, which require sustained investment to scale. For example, the company's Marine & Offshore division is poised to benefit from global decarbonization efforts, while its cybersecurity acquisitions position it to capitalize on rising digital security demandsBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1].

Moreover, the A3 rating from Moody'sBureau Veritas' LEAP | 28 strategy delivers outstanding results in 2024, confident 2025 outlook^[1]—a testament to the company's strong credit metrics—enables Bureau Veritas to access capital at competitive rates, further enhancing its ability to fund innovation and market expansion.

Conclusion

Bureau Veritas's EUR700 million bond issuance is a strategic milestone that reinforces its capital structure, supports disciplined growth, and aligns with its LEAP | 28 vision. By leveraging favorable market conditions and a robust credit profile, the company is well-positioned to execute its portfolio optimization and innovation agenda. With a clear focus on sustainability, digital transformation, and sector-specific leadership, Bureau Veritas continues to demonstrate how strategic capital deployment can drive long-term value creation in a dynamic global market.