Danone Secures €800 Million Sustainability-Linked Bond to Accelerate ESG Commitments
French multinational Danone has raised €800 million through a new sustainability-linked bond (SLB), reinforcing its commitment to environmental, social and governance (ESG) goals. The bond, which matures in April 2032, ties interest payments to Danone’s performance on two key sustainability indicators—greenhouse gas emission reduction and the promotion of healthier product portfolios.
This offering, completed on March 26, 2024, was quickly oversubscribed, underlining strong investor confidence in Danone’s financial strength and ESG strategy. The bond has a fixed annual coupon of 3.932%, and if the group falls short of its carbon reduction and nutrition enhancement targets, it will face an interest rate step-up in the final year of the bond’s term.
Danone’s stated targets include a 30% absolute reduction in Scope 1, 2, and 3 greenhouse gas emissions by 2030 from a 2020 baseline and increasing the percentage of net sales from products that contribute to healthier diets. These KPIs have been reviewed by an independent auditor and align with the group’s wider climate and health commitments.
The SLB coincides with Danone’s broader sustainability roadmap and 2030 goals, which are integrated into its strategic business planning. The structure of the bond creates a clear financial incentive for the company to progress on key ESG priorities—an approach gaining traction across the FMCG sector as investors seek greater transparency and accountability on sustainability metrics.
Crédit Agricole CIB, ING, and Natixis served as ESG structuring advisors for the transaction. BNP Paribas, Crédit Agricole CIB, ING, Morgan Stanley, and Natixis acted as joint bookrunners.
This bond issuance marks the continuation of Danone’s early adoption of ESG-linked financing instruments to support its business transformation. For FMCG companies navigating increasingly sustainability-conscious markets, Danone’s move signals growing consumer and investor expectations for measurable environmental and health-related outcomes.