Roquette's Oversubscribed €600M Hybrid Note Issuance Signals Strong Investor Faith in Growth Strategy

LILLE, FRANCE – April 16, 2026 – Roquette, a global leader in plant-based ingredients and pharmaceutical excipients, has successfully secured €600 million through a perpetual hybrid note issuance, an event marked by overwhelming investor demand that saw the offering oversubscribed by 4.7 times.

The final order book swelled to over €2.8 billion, a powerful market endorsement of the company’s financial strategy and its leadership position in the high-growth health and nutrition sectors. The successful pricing provides Roquette with significant capital, reinforcing its balance sheet as it integrates a major acquisition and pursues ambitious long-term growth initiatives.

A Masterclass in Capital Structure Optimization

The financing maneuver involves the issuance of perpetual hybrid subordinated notes, a sophisticated financial instrument that blends the characteristics of both debt and equity. With a fixed interest rate of 6% until the first reset date in April 2032, these notes are designed to provide long-term, stable capital while offering significant balance sheet flexibility.

Rating agency S&P Global Ratings assigned a 'BB+' rating to the notes, granting them a 50% “intermediate equity content.” This treatment is critical, as it allows Roquette to strengthen its capital base and manage its credit metrics more effectively. For accounting purposes under IFRS, the notes are treated as equity, further bolstering the company's financial standing without diluting existing shareholders. This is particularly important as Roquette navigates the financial landscape following its landmark acquisition of IFF Pharma Solutions, which closed in May 2025.

This hybrid issuance is a key component of the company's stated financial policy, which aims to maintain its investment-grade 'BBB' credit rating. Following the acquisition, S&P had placed Roquette on a 'Negative' outlook, citing concerns that its adjusted debt-to-EBITDA ratio could rise to between 3.6x and 3.8x in 2025. By using hybrid notes, which are partially treated as equity, Roquette is actively working to manage this leverage and demonstrate its commitment to a target net debt-to-EBITDA ratio of 2.3x to 2.7x by 2027.

Fueling a Health and Nutrition Powerhouse

While the press release cited “general corporate purposes” for the use of proceeds, the capital is intrinsically linked to Roquette's bold strategic expansion. A significant portion of the funds from this and a previous hybrid issuance in November 2024 is dedicated to refinancing the bridge facility used for the IFF Pharma Solutions acquisition. This transformative deal significantly enhances Roquette’s portfolio in pharmaceutical excipients and strengthens its role as a key partner to the health industry, particularly in advanced drug delivery solutions.

The infusion of capital also provides the financial firepower to accelerate other strategic pillars. The company is a consistent investor in research and development, exemplified by the recent opening of a new Pharmaceutical Innovation Center in São Paulo, Brazil, to serve the burgeoning Latin American market. This follows earlier investments in a plant protein R&D accelerator and a commitment to introduce new protein sources every five years.

Furthermore, the funds support ongoing capacity expansion, such as the development of the world's largest pea protein plant in Canada, and a robust sustainability agenda under its “life+nature” program. Roquette Ventures, the company's corporate venture arm, also continues to invest in innovative startups, creating an ecosystem that fosters next-generation solutions in food and pharma.

Navigating a Challenging Market with Discipline

The resounding success of the bond offering comes against the backdrop of a resilient but challenging financial year. In 2024, Roquette reported a turnover of €4.495 billion, a 10% decrease from the prior year, with consolidated EBITDA also declining 13% to €529 million. However, a story of strong operational discipline lies beneath these headline figures.

The company achieved a remarkable turnaround in free cash flow, generating €275 million in 2024 compared to a negative €364 million in 2023. This significant improvement, attributed to rigorous cost management and easing inflationary pressures, demonstrates an operational resilience that has clearly resonated with investors. This proven ability to manage its finances effectively in a tough environment provides a credible foundation for its ambitious growth plans and its deleveraging strategy.

The overwhelming demand for this latest hybrid offering suggests that investors have grown increasingly confident in Roquette's financial management and strategic vision, viewing the company as a well-run organization capable of navigating market cycles while executing a complex, long-term growth strategy.

A Bellwether for the Plant-Based Economy

Beyond the specifics of Roquette's balance sheet, this successful financing event serves as a broader indicator of robust investor appetite for the sustainable, plant-based economy. The eagerness of the market to fund a leader in plant-based ingredients and pharmaceutical excipients underscores a deep-seated confidence in the long-term viability and profitability of these sectors.

As consumers and industries alike pivot towards more sustainable and health-conscious solutions, companies like Roquette are seen not just as stable investments but as essential players in a global economic transition. The use of sophisticated financial instruments like hybrid bonds to fund this growth is becoming more common among top-tier corporations seeking to optimize their capital structures. The enthusiastic reception to Roquette's offering provides a powerful testament to its strategic positioning and solidifies its financial foundation to continue leading and innovating in the critical fields of health and nutrition.