THE WHAT? L’Oréal has announced that it has priced its inaugural public bond offer for an aggregate nominal amount of €3 billion.

THE DETAILS The offer comprises three tranches: a €1,000 million two-year fixed rate bond paying a coupon of 0.375 percent per annum; a €750 million, two-year floating rate note; and a €1,250 million, 4.25-year, sustainability-linked bond paying a coupon of 0.875 percent per annum.

THE WHY? The sustainability-linked bond is aligned with L’Oréal’s newly introduced sustainability linked financing framework, and tied to the French beauty giant’s achievement of three sustainability performance targets. The net proceeds of the bonds will be used for general corporate purposes, L’Oréal said, including the repayment of short-term debt related to its buyback of shares from Nestle.