Rolls-Royce Holdings (LSE:RR.) is planning its first euro-denominated bond issuance in six years as the aerospace and defence group looks to strengthen financial flexibility amid disruption linked to the conflict in the Middle East, according to a Bloomberg report published Monday.
The company has reportedly mandated banks to organise a dual-tranche debt offering consisting of five-year and 10-year maturities, according to a source familiar with the matter cited by Bloomberg. Investor meetings are expected to take place on Monday, with proceeds from the sale intended for general corporate purposes.
Company Seeks to Offset Impact of Middle East Disruptions
In a trading update released last month, Rolls-Royce said it expected to fully mitigate the current financial impact caused by operational disruption related to the regional conflict.
Management stated that the company was implementing measures designed to protect operations while maintaining its full-year 2026 guidance. Rolls-Royce continues to forecast underlying operating profit between £4 billion ($5.4 billion) and £4.2 billion, alongside free cash flow of between £3.6 billion and £3.8 billion.
The planned debt sale comes as companies across the aerospace and industrial sectors continue to monitor supply chain pressures, transport disruption and broader geopolitical uncertainty stemming from tensions in the Middle East.
Major Banks Lined Up for Bond Transaction
According to the Bloomberg report, BNP Paribas, Credit Agricole CIB, Goldman Sachs International, Lloyds Banking Group, Banco Santander and Societe Generale have been appointed to manage the transaction.
The issuance would mark Rolls-Royce’s first euro bond offering since 2020 and reflects ongoing efforts by large industrial groups to secure funding flexibility amid volatile global market conditions.
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