French utility Engie has issued EUR 850 million of green hybrid bonds
The bonds have a coupon rate of 1.5%, the lowest level ever achieved by a company for a 8-year maturity. The issue is 2.7x oversubscribed with an order book of EUR 4 billion before guidance revision. Engie says the European Investment Bank ranks first among the investors.
Orders have come from BeNeLux (29%), France (17%), the United Kingdom & Ireland
(17%), southern Europe (16%) and Germany (15%). Approximately 80% of the book
was allocated to sustainable investors.
At the same time, ENGIE has launched a buyback offer for three of its existing
hybrid bonds. The offer, which closed on 25 November 2020, enabled ENGIE to
repurchase EUR 850 million of existing bonds, an amount equal to the amount of
the new issue. The transaction enables ENGIE to extend the maturity of its
hybrid debt by 1.1 years while reducing its recurring cost by 0.30% on an
unchanged outstanding basis.