The logo of luxury group Kering is pictured at the company's headquarters in Paris.

PARIS — Shoring up its liquidity position, Kering has issued a dual tranche bond issue totaling 1.2 billion euros, the luxury group said Tuesday.

“This issue, in line with the group’s active liquidity management, enables Kering to diversify its sources of financing and to enhance its funding flexibility through refinancing of existing debt and extension of their average maturity,” said the company in a statement. The company added that the bond’s placement with investors was a sign of the market’s confidence in the creditworthiness of the group. Standard & Poor’s rates the company’s long-term debt A- with a stable outlook.

Last month, Kering reported a 15.4 percent decline in first quarter revenue and said it expects second-quarter revenues to be sharply impacted by the crisis. The French luxury group, which owns Gucci and Saint Laurent, among other brands, expects a drop in recurring operating margin in the first half.

While analysts are forecasting a decline in the luxury market this year, Kering is seen as one of the companies best equipped to weather the crisis. 

With the International Monetary Fund forecasting a 3 percent contraction in the global economy, Exane BNP Paribas has said to expect the luxury market to shrink by 20 percent in 2020, a downward revision of its previous forecast of 4 percent growth.