FORVIA successfully issues a JPY19.2 billion (c. €123 million) Samurai bond, thus further diversifying its debt investor base

On December 8, 2023, FORVIA, the world’s 7th-largest automotive technology supplier, successfully raised JPY19.2 billion – corresponding to c.€123 million - through a three-tranches senior bond issuance on the Japanese market. The three maturities of 2.25 years, 3.25 year and 5 years offer an average coupon of 2.62%.

This transaction represents FORVIA’s first issuance of a “Samurai bond” – yen‑denominated bonds issued by non-domestic issuers as well as the first-ever Samurai bond issuance by an international automotive supplier.

It contributes to the diversification of FORVIA’s debt investor base and supports the globalization of its footprint. The proceeds will be used for debt reimbursements, including the refinancing of local bank debt.

In parallel, using part of the cash proceeds related to the first euro one-billion disposal program successfully completed in the third quarter of 2023, FORVIA announced the repurchase of €150 million out of its €950 million 7.25% Sustainability Linked Bond maturing in 2026  contributing to the Group’s objective to reduce its overall gross indebtedness.

FORVIA’s Long-Term credit ratings stand at BB+, Ba2 and BB at Fitch, Moody’s and S&P respectively, with a stable outlook at all three rating agencies.