Nestle Said to Offer First Sterling Corporate Bonds of the Yearby
Nestle SA is offering the first pound-denominated debt from a non-financial company this year.
The world’s largest foodmaker is marketing 100 million pounds ($144 million) of notes maturing in 2020, according to a person familiar with the matter who asked not to be identified because they’re not authorized to speak publicly. The bonds will be added to securities sold in December, according to the person. Financial firms that have already issued sterling debt this year include Westpac Securities NZ Ltd.
Investment-grade firms will sell 35 billion pounds of bonds in 2016, compared with 31.9 billion pounds of bonds last year, according to Barclays Plc. Issuance may be capped by concern that the U.K. will leave the EU after Prime Minister David Cameron pledged to hold a referendum on membership of the 28-nation bloc, Barclays said.
Nestle’s bonds will pay a coupon of 1.75 percent, according to the person. Nestle didn’t immediately respond to an e-mail requesting comment on the potential bond sale.