DANONE : Danone successfully issues a pioneer €300m social bond continuing to invest for sustainable value for all

Blan, FRANCE


Press release - Paris, March 19, 2018

Danone successfully issues a pioneer €300m social bond
continuing to invest for sustainable value for all

First social bond issuance by a multinational in line with new social bond principles
                                                                                                                                   

Danone today announces the successful launch of a €300 million bond to finance and refinance projects that include positive social impacts. This innovative Social Bond is the first to be issued by a multinational aligned with the new Social Bond Principles, as set out in June 2017 by the International Capital Market Association.

A few weeks after the integration of ESG (Environment, Social and Governance) criteria in the payable margin of its €2bn syndicated loan, this pioneering bond issuance continues to support Danone's long-term ambition to leading the way to creating and sharing sustainable value. It attracted significant appetite from investors focused on ESG and was subscribed at attractive market conditions.

Proceeds will be allocated to projects promoting positive social impact on Danone's stakeholders, including:

  • Suppliers and agricultural partners by supporting responsible farming and agriculture. The company is strongly committed to supporting farmers and dairy producers at a local level, for instance in the U.S. where Danone pledged to develop a non-GMO offer;
  • Communities: Danone has been pioneering in social inclusiveness through funds supporting local projects dedicated to empowering communities and social entrepreneurs;
  • People with specific nutritional needs, through medical nutrition research in areas including pediatric neuro-disabilities and adult malnutrition and oncology. Danone provides tailored nutritional solutions to patients around the world;
  • Healthy foods entrepreneurship, by financing investments in small and medium size enterprises in the health and nutrition sector. Since its launch in 2016, Danone Manifesto Ventures, for example, has invested in a number of companies bringing unique concepts and business models that help drive forward the Food Revolution;
  • Employees, with enhanced employee health care coverage and extended maternity, parental leave and post-natal care. Danone's new Parental Policy, to be rolled out globally by 2020, has been recognized by UN Women, the global champion for gender equality, which has named Chairman and CEO Emmanuel Faber as a HeForShe Thematic Champion.

Cécile Cabanis, Chief Financial Officer, said: "By issuing this social bond, Danone has made another step in leading the way in creating and sharing sustainable value for all stakeholders. Creating positive impact on our ecosystem is a key enabler to drive sustainable value. And I'm very proud that after integrating ESG criteria in our €2bn syndicated loan, we are now the first multinational to issue a social bond under new social bond principles. I would also like to thank all the teams and partners that have made this possible. This bond issuance has attracted significant interest from ESG Investors, as we continue our journey embracing the Food Revolution supported by our 'One Planet. One Health' vision."

The bond issue consists of a €300 million euro-denominated senior note with a 7-year maturity and offering a 1.00% coupon, due March 2025. The settlement is expected to take place on March 26, 2018 and the bond will be listed on Euronext Paris.

Vigeo Eiris, a leading ESG rating agency, has delivered an independent second opinion on the sustainability credentials and management of this social bond. The projects selected and the allocation process will be overseen by Danone's Sustainability Integration Committee. Allocation of the proceeds will be annually audited until completed and yearly update on the social impacts of investments will be provided to the investors.

The documentation related to this bond issuance is available on the "investors" page of Danone's website (section 'Debt and Rating').

About Danone (www.danone.com)

Dedicated to bringing health through food to as many people as possible, Danone is a leading global food & beverage company built on four businesses: Essential Dairy and Plant-Based Products, Waters, Early Life Nutrition and Advanced Medical Nutrition. Danone aims to inspire healthier and more sustainable eating and drinking practices, in line with its vision -Danone, One Planet. One Health- which reflects a strong belief that the health of people and the health of the planet are interconnected. Building on health-focused categories, Danone commits to operating in an efficient and responsible manner to create and share sustainable value.  Danone holds itself to the highest standards in doing business, as reflected by its ambition to become one of the first multinationals certified as B Corp. With products sold in over 120 markets, Danone generated sales of €24.7 billion in 2017. Danone's portfolio includes leading international brands (Activia, Actimel, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon,  Volvic, amongst others) as well as strong local and regional brands (including AQUA, Blédina, Bonafont, Cow & Gate, Horizon Organic, Mizone, Oikos, Prostokvashino, Silk and Vega).
Listed on Euronext Paris and on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes, Vigeo, the Ethibel Sustainability Index, MSCI Global Sustainability, MSCI Global SRI Indexes and the FTSE4Good Index.

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FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "objective" "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "will," "could," "predict," "continue," "convinced," and "confident," the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, statements regarding Danone's operation of its business, and the future operation, direction and success of Danone's business.

Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the "Risk Factor" section of Danone's Registration Document (the current version of which is available on www.danone.com).

Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.


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