EnBW Issues Bond with Term of 12 Years
OREANDA-NEWS. Via its subsidiary EnBW International Finance B.V., EnBW Energie Baden-Wurttemberg AG, Karlsruhe, today issued a corporate bond with a total value of 500 million EUR with a fixed term to maturity of 12 years.
The transaction was led by a banking syndicate consisting of BNP Paribas, Citigroup and DZ BANK as joint lead managers. “Currently, the market environment is very positive. We have seized this opportunity to pre-finance future maturities”, explained Thomas Kusterer, CFO of EnBW.
The issue date will be 4 June 2014, with repayment due on 4 June 2026. The EnBW bond comes with a coupon of 2.5 percent. With a credit spread of 72 basis points above mid-swap, the bond was successfully placed with long-term investors at a denomination of 1000 EUR.
In March 2014, EnBW had already issued a successful hybrid bond with a volume of 1 billion EUR. Investor interest in the current bond issuance was again high. Due to the level of demand, the book building process was closed very quickly as the bond was significantly oversubscribed.
The transaction supports the implementation of the EnBW strategy 2020. With an overall investment volume of around 15 billion EUR up to 2020, EnBW is actively structuring the “Energiewende”. Thomas Kusterer underlined the company's approach: “The strategic realignment will fundamentally change the business portfolio of EnBW. We are changing our business portfolio along our growth areas up to 2020. In the end, EnBW will have a significant share of operating income from low-risk regulated activities, will be more renewable and have achieved greater 'customer proximity'”.
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