Marking a new milestone in its commitment to social & environmental responsibility, Korian has issued €173 million of 8-yea...
19 Juin 2020 - 07:30AM
Business Wire
Regulatory News:
Korian (Paris:KORI), the leading European care and support
services group for elderly and fragile people, has successfully
issued its first Sustainability Linked Euro PP, amounting to €173
million of 8-year notes.
When publishing its annual results on 28 February 2020, Korian
presented 15 quantitative and measurable ESG1 commitments in line
with the main aspects of its “In Caring Hands” corporate project
(Autonomy of elderly and vulnerable people - Quality at work -
Making a positive contribution to ageing well - Engaging in local
communities - Reducing carbon footprint), thereby showing its
dedication to its customers, employees and all stakeholders.
In line with that approach, Korian decided to carry out a
Sustainability Linked Euro PP, which links part of its long-term
financing with the fulfilment of three of those key commitments
between now and 2023:
- Achieving ISO 9001 certification across all its facilities in
Europe, - Doubling the proportion of staff members participating in
qualifying training programs, - Reducing its direct and indirect
CO2 emissions.
Depending on the extent to which each of those targets are met,
the interest rate on the notes may be increased or reduced by up to
20bp. If the interest rate is increased, half of the increase will
be allocated to internal compensatory measures and/or paid to one
or more external partners (such as associations or NGOs), with the
other half being paid to investors. Korian’s fulfilment of the
commitments concerned will be checked annually by an independent
third party when the Group’s Statement of Extra-Financial
Performance is reviewed.
The funds raised in the placement will be used for the Korian’s
general funding purposes. The notes, which have been bought by
renowned institutional investors, extend the average maturity of
Korian’s debt and diversify its funding sources. They also show the
market’s confidence in the Group’s credit quality and in its
ambitious social and environmental responsibility strategy.
The amount raised is the largest ever for a Sustainability
Linked Euro PP, confirming investors’ support for Korian’s ESG
commitments.
It was also the first Sustainability Linked Euro PP to be
carried out following the publication of the Sustainability-Linked
Bond Principles2 by ICMA (International Capital Market Association)
in early June 2020, and the placement was structured in line with
those principles.
The notes will be listed on Euronext Access and settlement is
scheduled to take place on 29 June 2020.
Société Générale was the Global Co-ordinator, Sustainability
Structurer and Joint Arranger of the transaction, and CIC Market
Solutions was the other Joint Arranger.
White & Case advised Korian and CMS Francis Lefebvre Avocats
advised the arrangers.
Next event 22 June 2020 Annual General
Meeting (closed-door session)
Next publication 30 July 2020: first-half
2020 revenue and earnings (after the market close)
About Korian
Korian is the leading European care and support services group
for elderly and fragile people. www.korian.com
Korian has been listed on Euronext Paris
Section A since November 2006 and is included in the following
indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small
and MSCI Global Small Cap
Euronext ticker: KORI - ISIN: FR0010386334 –
Reuters: KORI.PA – Bloomberg: KORI.FP
____________________ 1 ESG :
Environmental-Social-Governance 2
https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/June-2020/Sustainability-Linked-Bond-PrinciplesJune-2020-090620.pdf
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version on businesswire.com: https://www.businesswire.com/news/home/20200618005988/en/
INVESTOR RELATIONS Sarah
Mingham VP Investor Relations and Financing
sarah.mingham@korian.com Tel: +33 (0)1 55 37 53 55
Carole Alexandre Deputy Head of Investor Relations
carole.alexandre@korian.com Tel: +33 (0)7 64 65 22 44
PRESS CONTACT Marjorie
Castoriadis Head of Media Relations
marjorie.castoriadis@korian.fr Tel: +33 (0)7 63 59 88 81