Nestle Snaps 28-Year Loonie Hiatus With C$2 Billion Bond Sale

(Bloomberg) -- Nestle SA sold its first corporate bond in Canadian dollars since 1993. 

The Vevey, Switzerland-based company issued C$2 billion ($1.6 billion) of bonds maturing in January 2029, according to people with knowledge of the transaction. The offering was priced to yield 70 basis points over the Canadian dollar yield curve after earlier discussions in the range of 70 basis points to 72 basis points, the people said. 

After Nestle’s deal non-Canadian corporate issuers have raised almost C$18.2 billion in the so-called Maple bond market so far this year, which also included transactions from companies such as Verizon Communications and London’s Heathrow airport. According to data compiled by Bloomberg, that’s a record and compares to C$8.1 billion raised in 2020.

In September, Nestle raised $5 billion by issuing bonds in six parts, including a seven-year portion. It last issued in Canadian dollars in September 1993 -- 28 years ago -- when it sold C$300 million of five-year bonds. 

Today’s Nestle issue garnered an order book more than double the size of the offering from 55 investors, according to people familiar with the matter. A press officer at Nestle didn’t immediately provide a comment.

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