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Pernod Ricard successfully issued its €750m inaugural sustainability-linked bond issuance

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Natixis acted as Global Coordinator and Sole Sustainability Structuring Advisor for the issuance of €750 million inaugural Sustainability-Linked Bond.

On Thursday March 31st,  Pernod Ricard, the n°2 worldwide producer of wines and spirits, successfully launched its €750 million 7-Y inaugural Sustainability-Linked Bond, as a first in its sector. This deal is the biggest issuance for Pernod Ricard since April 2020.

The Group’s inaugural sustainability-linked bond is linked to two environmental commitments:

  • SPT1: reduce the Group’s absolute greenhouse gas emissions (Scope 1&2) by 26% by 2025 from a FY18 baseline, aligned with a 1.5°C trajectory [1]
  • SPT2: decrease the water consumption per unit at distilleries by 12,5% by 2025 from a DY18 baseline

Pernod Ricard adopted the “all-or-nothing” approach in the financial impact mechanism, with an increase of the Original Rate of Interest by 25bps (until redemption) in case of failure to achieve one or more of the SPTs.

Ambitious SPTs combined with a strong hit rate of ESG investors during marketing allowed for a final spread fixed at MS+ 45 bps, representing a zero NIC (vs 10 bps average over the week). Pernod Ricard, through this operation, demonstrates its credibility to harness environmental issues and its strong credit profile. With a final order book at €3,4bn (x4,5 oversubscription ratio) the allocation was diversified.

This bond has been issued under the overarching Sustainability-Linked Financing Framework structured with the assistance of Natixis Green & Sustainable Hub to encompass all potential debt instruments (bond, loan, etc.), highlighting the Group’s ambition to become an active player of sustainable finance.

The Framework also includes a scope 3 emissions KPI and related target by 2030, which is a core priority for the Group, including the entire supply chain with farmers and terroirs.

Natixis was keen to work with all Pernod Ricard teams to focus on the most material issues as well as establish an inclusive sustainable financing strategy for the Group in one given framework and structuring process.

Table: Action plan and strategies to achieve the SPTs

Dry goods

Wet goods

Hybrid furnaces installation at glass suppliers’ sites

Regenerative agriculture projects in our priority terroirs

Using biofuels and biomass for energy in glass melting furnaces

In-setting for carbon sequestration

Piloting hydrogen use for energy in glass making furnaces


Ensuring development of renewable energy sources use


This Framework is aligned with ICMA’s 2020 Sustainability-Linked Bond Principles (SLBP) and LMA’s 2021 Sustainability-Linked Loan Principles (SLLP) and received a Second Party Opinion from Sustainalytics.


To go further: 

  • Framework, SPO and Investor Presentation, available here
  • Press release, available here

[1] In 2019, the SBTi approved the initial scope 1+2 targets submitted by Pernod Ricard, in line with the objective to limit global warming “well below +2°C”.