Barry Callebaut raises €1.7 billion in bonds, amid refinancing drive
Barry Callebaut has expanded its reach in recent years, including opening facilities in Ecuador for cocoa. Pic: Barry Callebaut
Swiss-headquartered Barry Callebaut chocolate and cocoa processing group has confirmed the business has raised a pivotal €1.75 billion financing in capital bonds, as the company continues a major digital transformation move, reports Neill Barston.
As the company confirmed, the proceeds will be used towards servicing existing debts, as the company seeks to solidify its position after a challenging period for the wider industry.
Moreover, as previously reported, with cocoa prices hitting around $12,000 a tonne on Futures markets, the company had recently embarked on a restructuring move as it seeks to re-evaluate its global operations. This included the company outlining that this would require a total of up to 2,500 job cuts anticipated across the business in response to market conditions.
On its latest financial move raising funds on the Euro bond capital markets, the key chocolate and cocoa business, it explained it had raised total sum in bonds in the form of a 3 year tranche of EUR 900 million and a 6.5 year tranche of EUR 850 million.
As part of the deal, the company observed that its undrawn bridge term loan facility it took on in December 2024 is to be cancelled in full. Consequently, it said that the success of the bond issuance allows the Group to take a proactive approach on upcoming maturities in fiscal year 2024/2025 and 2025/2026.
Peter Vanneste, CFO of the Barry Callebaut Group, said: “Today’s successful bond issuance in the Euro capital markets highlights the continued support from our investment community. We are pleased to have secured additional funding which provides flexibility needed to address the continued volatility in cocoa bean prices.”
