Rexel Completes €100 Million Tap Issue on Sustainability-Linked Notes
Rexel has successfully completed a €100 million tap issue on its existing 2.125% unsecured senior sustainability-linked notes due 2028, increasing the total amount outstanding.
Rexel, a global distributor of electrical supplies and related services, has announced the successful completion of a €100 million tap issue. This expansion relates to its existing unsecured senior sustainability-linked notes, which mature in 2028 and carry a coupon of 2.125%.
The tap issue increases the total outstanding amount of these notes, reflecting the company's strategy to optimize its capital structure and further integrate sustainability performance into its financing. Sustainability-linked bonds are designed so that their financial characteristics, such as the coupon rate, can change based on the issuer's achievement of predefined sustainability key performance indicators.
Rexel operates across various sectors, including building distribution, industrial supplies, and data centers. The company has been focusing on enhancing its sustainability performance, including efforts to reduce its environmental impact and promote energy efficiency solutions. This financing reinforces its commitment to these ESG (Environmental, Social, and Governance) objectives.
The electrical distribution market is competitive, with major players vying for market share through product offerings, service capabilities, and strategic acquisitions. Rexel's issuance of sustainability-linked notes aligns with broader market trends where companies are increasingly using financial instruments tied to ESG targets to attract investors and signal their commitment to responsible business practices.