Veolia Environnement Issues EUR850 Million Hybrid Bonds for Environmental Management Services

Veolia Environnement has issued EUR850 million in hybrid bonds. The company is the world leader in environmental management services, with operations in water management, waste management, and energy services. Net sales are distributed geographically across various countries, with France accounting for 19.7% and the US accounting for 10.9%.

Veolia Environnement, the global leader in environmental management services, has successfully issued EUR850 million in hybrid bonds. This issuance, which took the form of deeply subordinated perpetual notes, was well-received by the market, with orders from nearly 200 investors totaling EUR4.7 billion. The oversubscription rate was above 5.5 times, indicating strong investor demand Veolia Successfully Places a EUR850 Million Hybrid Bonds Issuance^[1].

The bonds carry a coupon of 4.322% and have a first reset date in January 2033. The transaction was completed at a concession of 5 basis points below fair value, reflecting the positive perception of Veolia's financial strength and market positioning Veolia Successfully Places a EUR850 Million Hybrid Bonds Issuance^[1].

This issuance is part of Veolia's ongoing refinancing efforts, following previous successful transactions this year. Emmanuelle Menning, Deputy Veolia CEO Finance and Purchasing, highlighted the company's ability to access financial markets under current macroeconomic and political uncertainty. She noted that the excellent market response confirms Veolia's leadership in ecological transformation and the strength of its activities in water, energy, and waste management Veolia Successfully Places a EUR850 Million Hybrid Bonds Issuance^[1].

Veolia operates across five continents, employing 215,000 people and serving 111 million inhabitants with drinking water and 98 million with sanitation. In 2024, the company generated EUR44.7 billion in revenue, with net sales distributed geographically as follows: France (19.7%), the United States (10.9%), Poland (6.8%), the United Kingdom (6.8%), Germany (6.8%), Spain (6.3%), Australia (4.7%), the Czech Republic (4.7%), Morocco (2.8%), Italy (2.6%), Belgium (2.4%), China (2.2%), Hungary (1.8%), Chile (1.8%), Hong Kong (1.4%), Japan (1.3%), Slovakia (1.2%), and other regions (15.8%) Veolia Environnement Issues EUR850 Million Hybrid Bonds^[2].

Veolia's diverse portfolio includes water management, waste management, and energy services. The company's water-related services, waste management services, and energy services account for 40.4%, 35%, and 24.6% of net sales, respectively. These services range from water resources management and waste treatment to the provision of heating and cooling networks Veolia Environnement Issues EUR850 Million Hybrid Bonds^[2].

This issuance underscores Veolia's financial stability and market leadership, positioning it as a key player in the environmental management sector. The successful placement of these hybrid bonds further demonstrates the company's ability to secure favorable financing terms and maintain its market position.