Overview of the Bond Issue
Grupo Nutresa, a prominent Colombian food conglomerate, has announced the largest corporate bond issue in the country’s history. The company plans to raise $1,000 million between 2030 and 2035, with bond terms ranging from five to ten years. Each bond will have a nominal amount of $500 million.
Previous Bond Emission and New Announcement
This new bond issue follows a successful $3,000 million emission in May of the same year. The demand for these bonds reached $3,200 million, and the issuance will be subject to standard conditions for such operations.
Purpose of the Bond Issue
Grupo Nutresa intends to use the funds from this bond issue to pay off local debt in Colombia and for general corporate purposes.
Subordinated Co-Emitters and Guarantors
The subordinated co-emitters participating in this bond issue include Alimentos Cárnicos, Comercial Nutresa, Compañía de Galletas Noel, Compañía Nacional de Chocolates, Industria Colombiana de Café, Productos Alimenticios Doria, Zenú, Novaventa, and others.
The guarantors for this five to ten-year bond issue are Tresmontes Lucchetti México S.A. de C.V. and Nutresa S.A. de C.V.
Bond Terms and Interest Rates
The coupon rate for this bond issue is 6.4% for five years and 7.4% for ten years. The credit rating for this operation is Baa3 stable and BB+ stable, according to Moody’s and Fitch, respectively.
Comparison with Previous Bond Issue
The May bond issue had interest rates of 8% for five years and 9% for ten years. The current operation also received support from J.P. Morgan, BTG Pactual, Citi, Deutsche Bank, and Goldman Sachs. This bond issue is one of the most significant transactions by Latin American companies in the past two years, following Pemex’s operation in Mexico earlier in 2023.
Financial Performance of Grupo Nutresa
Grupo Nutresa, led by President Jaime Gilinski, recently released its financial results for the period between April and June. The company reported revenues of $5.1 trillion, surpassing the $4.4 trillion generated during the same period in 2024.
Grupo Nutresa achieved a net profit of $477,559 million, marking an annualized increase from the $164,837 million net profit in the second quarter of the previous year.
For the first half of the year, Grupo Nutresa reported consolidated sales of $10 trillion, exceeding the $8.7 trillion generated during the same period in 2024. The company also recorded a profit of $718,811 during this period.
Key Questions and Answers
- What is the purpose of Grupo Nutresa’s bond issue? The funds will be used to pay off local debt in Colombia and for general corporate purposes.
- How does this bond issue compare to the one in May? The new bond issue is larger, with a target of $1,000 million compared to the previous $3,000 million. The interest rates for this issue are also lower than those of the May issuance.
- Who are the guarantors for this bond issue? Tresmontes Lucchetti México S.A. de C.V. and Nutresa S.A. de C.V.
- How has Grupo Nutresa performed financially? The company reported strong financial results, with revenues surpassing expectations and net profits increasing significantly compared to the same periods in previous years.
