ENGIE Issues €1 billion Green Hybrid Bond
ENGIE has issued its first corporate hybrid green bond for 2019, for an amount of €1 billion. The perpetual subordinated bond bears a coupon of 3.25 per cent and its first non-call period is 6 years and 1 month.
The company has also announced the launch of a tender offer on its outstanding PerpNC2019 hybrid bonds issued in 2014.
The quality of ENGIE’s credit, combined with the hybrid and green features of this new issue, has led to a large oversubscription from investors (6.5X). Investors include the European Investment Bank (with the support the Investment Plan for Europe, also known as the Juncker Plan) for the first time in the French market.
The new issue will replace the PerpNC2019 bonds purchased under the tender offer, thereby leaving unchanged the total equity content granted by rating agencies through this instrument.
With a total of €7.25 billion of green bonds issued since 2014, ENGIE strengthens its position amongst the biggest issuers of corporate green bonds. As a leader in the energy transition, ENGIE has made it a priority to support the development of sustainable finance, notably the green bond market.