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Reckitt Benckiser prices EUR debt offering in three parts
ByAinvest
Monday, Sep 1, 2025 11:36 am ET1min read
Reckitt Benckiser prices EUR debt offering in three parts
Title: Reckitt Benckiser Prices EUR Debt Offering in Three PartsBritish consumer goods giant Reckitt Benckiser Group plc has priced a new euro-denominated debt offering in three parts, according to recent announcements. The company, known for its extensive portfolio of consumer health and hygiene brands, has issued a 3-year and a 9-year euro bond, along with a 6-year sterling bond.
The base prospectus for the €10,000,000,000 Medium Term Note (EMTN) Programme, guaranteed by the company, has been published [1]. The bonds are priced above risk-free rates, leveraging narrow corporate spreads to secure cost-effective financing. The 6-year sterling bond is priced at 90 basis points above the yield on the U.K. government bond maturing in July 2031, while the 3-year and 9-year euro bonds are priced at midswaps plus 80 basis points and 125-130 basis points, respectively.
Reckitt Benckiser's recent issuance of euro and sterling bonds reflects a disciplined approach to capital structure optimization amid volatile macroeconomic conditions. The company's strong liquidity position and robust operational cash flow support its ability to secure favorable financing terms. Currency risk management remains a key aspect of the company's strategy, with forward contracts and EUR/GBP-aligned borrowing stabilizing cash flows amid stagflation risks and geopolitical volatility.
The strategic advantages of Reckitt's Q3 2025 issuances are evident. By securing long-term financing during a period of favorable spreads and hedging currency risks effectively, the company strengthens its liquidity position and provides investors with high-quality, yield-enhancing opportunities. The alignment of bond terms with market dynamics further underscores the company's operational discipline.
References
[1] https://www.tradingview.com/news/reuters.com,2025-09-01:newsml_RSA4291Xa:0-reg-reckitt-benckiser-gp-emtn-programme-publication-of-base-prospectus/
[2] https://www.ainvest.com/news/reckitt-benckiser-strategic-euro-sterling-bond-issuances-currency-risk-management-2509/
[3] https://www.marketwatch.com/story/reckitt-benckiser-markets-new-euro-and-sterling-bonds-b495a2e1
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