THE WHAT? Procter & Gamble is planning to sell US$5 billion in bonds, according to a report published by Biz Journals.
THE DETAILS The US FMCG giant told Biz Journals that the move was ‘routine’ and aimed at debt financing.
P&G CFO Jon Moeller has warned that the company’s sales and profit would be impacted by the COVID-19 outbreak due to reduced store traffic and supply chain disruptions. However, thus far, the company has not had to shut down manufacturing operations as the manufacturer of Pampers produces a wide array of in-demand personal hygiene and cleaning products that are deemed ‘essential’.
THE WHY? Corporate bonds have become a popular investment vehicle as stock markets the world over crash in the wake of COVID-19 closures. While no company is immune to the effects of COVID-19, producers of sought-after essentials such as diapers and laundry detergent are faring better than most.