Kingspan bond sale set to raise €800m

Irish building insulation giant Kingspan Group is looking to raise an expected €800m from a two-part green bond sale, after the AI data centre buildout helped the Irish company lift its profit outlook last month.

Irish building insulation giant Kingspan Group is looking to raise an expected €800m from a two-part green bond sale, after the AI data centre buildout helped the Irish company lift its profit outlook last month.

The Cavan-founded firm is offering a four-year tranche at initial price thoughts of around 100 basis points over mid-swaps and seven-year debt at around 125 basis points over, according to a person familiar with the matter who asked not to be identified.

Kingspan last month raised its full-year trading-profit forecast to €1.13bn from €1.05bn. Its Advnsys unit which makes data centres materials saw order intake increased by over 100% year on year.

In August, it acquired BMC Manufacturing — another Irish company that makes data centre equipment — for up to €900m in cash and shares. The cash for the deal was fully funded from its existing credit facilities.

The new debt comes even as concerns linger over the scale of spending on AI infrastructure and data centres as well as growing political opposition which is slowing the sector’s growth.

The bonds are expected to be rated BBB by S&P Global Ratings and Fitch Ratings, with proceeds earmarked for eligible green projects. BNP Paribas, Bank of America, ING Bank and UniCredit are managing the sale.

Bloomberg