Arla Foods has raised €1.0 billion on the bond market, giving the cooperative greater financial flexibility and funding, in part, the refinancing of existing debt.

Arla Foods has raised €1.0 billion on the bond market, the dairy giant announced in a statement to Danish financial newspaper Børsen on Saturday.

The issuance follows Arla’s first official credit rating, which the cooperative received last week.

The proceeds will give the group greater financial headroom and will be used in part to refinance existing debt. The strong interest from investors is seen by Arla as a sign of market confidence in the company’s long-term direction.

“The successful bond issuance and strong investor interest underline confidence in Arla’s solid business model and long-term strategy. With this financing in place, we have further strengthened our financial platform, enabling us to continue developing the business for the benefit of our farmers,” said Torben Dahl Nyholm, Chief Financial Officer at Arla.

The issuance comes as Arla awaits a ruling from competition authorities on its planned merger with DMK Group, Germany’s largest dairy cooperative. The merger was announced in April 2024 and is intended to create Europe’s largest dairy cooperative.

By Maja Løvstrup
Source: Børsen
Photo: Arla