OREANDA-NEWS. GDF SUEZ issued a second hybrid bond issue following its hybrid issue of July 2013, for an amount of EUR 2 billion, taking advantage of exceptional market conditions for this type of financing. The Group was thus able to strengthen its balance sheet while diversifying its investor base.

The transaction was completed in two tranches, with an average coupon of 3.4%:

a EUR 1,000 million tranche callable from June 2019 with a 3% coupon, the lowest rate ever obtained for this type of financing, and

a EUR 1,000 million tranche callable from June 2024 with a 3.875% coupon.

The funds raised will mainly be used to repay or redeem debt. In view of this, the Group intends to soon launch a buy-back offer on some of its senior corporate bonds.

Isabelle Kocher, Executive Vice President and Chief Financial Officer, commented “Following the confirmation by Moody's of our A1 credit rating and the upgrade of the outlook and the success of our green bond issue, these dynamic debt management transactions fit perfectly with our ongoing balance sheet optimization program supporting the Group's growth strategy. The Group reiterates its balance sheet structure objectives: an 'A' category rating and a net debt to Ebitda ratio of EUR 2.5.”

These bonds will be accounted for as 100% equity under IFRS standards and as 50% equity by the Moody's and S&P rating agencies.