PARIS Dec 4 Louis Dreyfus Commodities has
completed a 500 million euro ($678 million) bond issue, the
trading firm's third foray into bond markets in just over a year
as it seeks to increase its financing muscle.
Louis Dreyfus is the "D" of the so-called ABCD majors that
dominate global trade in agricultural products, a quartet that
also comprises Archer Daniels Midland, Bunge and
As competition has intensified to secure farm-sector assets
in response to rising global food demand, privately-held Louis
Dreyfus has turned to bonds to support higher investments.
The Netherlands-based company, which issued bonds for the
first time in its 150-year history in September 2012, said on
Wednesday it had wrapped up the 500 million euro issue of a
seven-year Eurobond listed on the Luxembourg Stock Exchange.
"Market conditions enabled us to seize the opportunity to
pursue the diversification of Louis Dreyfus Commodities' funding
sources and extend the company's long term debt maturity," Chief
Financial Officer Claude Ehlinger said in a statement.
The order book for the issue peaked at over 1.8 billion
euros, he added.
IFR had reported last week the launch of the bond issue,
saying it was expected to raise 300 million to 500 million
Last year, Louis Dreyfus said it aimed to increase
investments in the five years from 2012 by 40 percent compared
In a prospectus accompanying the bond issue, the firm said
its strategy aimed to reinforce its reach along the supply
chain, by picking up assets from orange groves to sugar
refineries, and to expand in high-growth regions like Asia and
the Black Sea zone.
It announced in October a joint venture with Brooklyn Kiev
LLC to develop and manage a multi-commodity terminal at the
Ukrainian Black Sea port of Odessa.
In its inaugural bond issue last year, Louis Dreyfus raised
$350 million in a hybrid perpetual bond listed on the Singapore
Stock Exchange. It then raised 400 million euros in July 2013
via a 5-year Eurobond listed in Luxembourg.