Compagnie Financiere Richemont : Richemont Places Bonds Worth EUR2 Billion

By Cristina Roca

Compagnie Financiere Richemont SA said late Monday that it has successfully placed 2 billion euros ($2.17 billion) in bonds.

The notes mature in 2028, 2032 and 2040, and the net proceeds will be used for Richemont's general corporate purposes, the Swiss luxury group said.

"Whilst Richemont has a robust balance sheet and more than adequate cash resources, we view it prudent to secure additional liquidity to weather potentially tougher times ahead," Chief Financial Officer Burkhart Grund said.

Last week, the company cut its dividend for the first time since its reorganization in 2008, when it separated the luxury-goods business from its other interests.

Richemont said last week that while it had the necessary cash to keep raising its dividend, it opted for prudence in light of the coronavirus crisis.

Write to Cristina Roca at [e-mail]; @_cristinaroca