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​Arla successfully issues 1 billion SEK bonds

Press Release   •   May 23, 2016 15:45 CEST

Arla Foods has today successfully priced an issuance of 5-year SEK bonds for a principal amount of 1 billion SEK maturing on 31 May 2021 guaranteed by Arla Foods amba.

The bonds are split into two tranches:

SEK 500 million fixed with a coupon of 1.875%.
SEK 500 million floating rate with a coupon of STIBOR 3 month plus 1.70%

The notes will be issued under the company’s 750 million euro European Medium Term Note (EMTN) programme, which is listed on the Irish Stock Exchange. Danske Bank and Nordea are lead managers.

The issue refinances elements of Arla's existing bank debt.

“This is the fourth time Arla issues bonds in the Swedish market since our inaugural issue in 2011. We have today issued a fixed rate bond with the lowest coupon ever. Arla seeks to have a well-diversified funding base and the Swedish bond market is an important part of our funding portfolio,” says Arla Foods CFO, Natalie Knight.

The issue is targeted professional investors.

Arla wishes to establish the broadest possible financing platform without compromising the company’s ownership structure. Consequently this is the fourth time Arla Foods has issued bonds to professional investors since 2011 as a supplement to other financing sources.

The bond issue does not affect Arla's ownership structure and its 100 per cent ownership by its members, the dairy farmers.

Arla Foods is an international dairy company owned by 12.700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. Arla Foods is one of the strongest players in the international dairy arena, with a wide range of dairy products of highest quality. Well-known brands like Lurpak® and Castello® belong to the Arla family. Arla Foods is also the world's largest manufacturer of organic dairy products.