Schneider Electric raises €1.5 billion through dual-tranche bond offering
What's the deal? French industrial group Schneider ElectricDealroom has a profile for this one. Try Dealroom → raised €1.5 billion through a two-part bond offering on 25 June 2026.
The deal splits into an €800 million two-year floating-rate note and a €700 million seven-year fixed-rate bond.
The floating-rate note, maturing July 1, 2028, priced at par with a coupon of three-month Euribor plus 30bp. The seven-year bond, due December 1, 2033, priced to yield 3.386%, with a 3.375% annual coupon.
Why now? Schneider Electric holds strong credit ratings: A2 stable from Moody's and A stable from S&P, with the new notes expected to be rated A.
That standing let it lock in favourable terms across both tranches. Settlement is scheduled for July 1, 2026.
Crédit Agricole CIBDealroom has a profile for this one. Try Dealroom →, Deutsche BankDealroom has a profile for this one. Try Dealroom →, J.P. MorganDealroom has a profile for this one. Try Dealroom →, HSBCDealroom has a profile for this one. Try Dealroom →, MUFGDealroom has a profile for this one. Try Dealroom →, and NatixisDealroom has a profile for this one. Try Dealroom → acted as active bookrunners.
What could go wrong? The floating-rate tranche ties payments to three-month Euribor, exposing Schneider to rising rates over the next two years.
The seven-year fixed bond locks in a known cost but commits the group to repayment well into the next decade.
The signal: The dual-tranche structure lets Schneider Electric, a mature group focused on the digital transformation of energy management and automation, spread its refinancing across short- and long-dated maturities while spreads stay tight. The seven-year bond priced just 58bp over mid-swaps, a sign that investors still reward blue-chip industrials with cheap capital.
Read more: Econostream Media
Image credit: Ministère du Travail, de l'Emploi et de la santé
