Standard Chartered arranges S$125 million deal for LVMH

LVMH hits the Singapore bond market with a S$125 million deal.
Moet Hennessy Louis Vuitton (LVMH), the international luxury goods group whose brands include Dom Perignon, Givenchy and Christian Dior, has launched its second borrowing in the Singapore bond market. Standard Chartered acted as sole lead manager on the S$125 million ($68.3 million) transaction.

LVMH's first visit to the Singapore dollar debt market was in June 2000 with a short-term S$100 million one-year deal.

The latest offering is for five years of unrated fixed rate bonds that carry a semi-annual coupon of 4%. It marks the only  unrated issue from a multinational company to be sold in the local debt market.

An official at the lead manager said the transaction was fully subscribed and had been picked up by a full range of institutional investors.

As LVMH does not have a long-term rating from any of the international agencies, comparing pricing to similar deals is not straightforward. However, the issuer does have a short-term rating of A2 from Moody's, the same as the long-term rating of Ford Motor Company, which in March this year issued S$100 million of five-year notes.

That deal, which was lead managed by HSBC, priced tighter than the LVMH deal, carrying an annual fixed rate coupon of 3.88%. 

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