Investors piled in for LVMH’s first debt sale in three years, as the luxury goods maker seized on stellar quarterly results as well as calmer conditions in Europe’s credit market.

Demand for the Paris-based owner of Christian Dior and Louis Vuitton closed above €2.7 billion ($2.95 billion) for €1 billion of new bonds due in 2025, according to a person familiar with the matter, who asked not to be identified because they aren’t authorised to speak publicly. Interest had peaked at €3.6 billion during marketing before the final price was set.

The bond is LVMH’s first venture into global debt markets since April 2020, when the company sold debt in the wake of the pandemic. That sale came soon after a huge deal in February to support the acquisition of Tiffany & Co.

CreditSights Inc. analysts, including Maryum Ali, said LVMH benefits from “exceptionally strong credit fundamentals.” She highlighted its low leverage and good free cash flow.

Today’s deal comes after LVMH reported first-quarter organic sales growth in its fashion and leather goods unit of 18 percent — almost twice what analysts were expecting and spurring a new record high for the stock. It also comes as a major credit risk measure in Europe falls back near levels seen before the recent banking sector turmoil.

Cargill Inc and Eurogrid GmbH are among other companies marketing new deals in the region on Monday, with market participants expecting deals to pick up this week.

The strong demand allowed LVMH to significantly reduce the spread on offer by about 22 basis points to 7 basis points below mid-swaps, according to the person familiar. In the current environment of rate hikes, it has become rare for a corporate offering to price below mid-swaps, showing the pull of a big name like LVMH.

Barclays Plc, Deutsche Bank AG, JPMorgan Chase & Co., Societe Generale SA and Mitsubishi UFJ Financial Group Inc. are working on the deal.

A spokesperson for LVMH declined to comment.

By Priscila Azevedo Rocha

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