Germany: EnBW Raises EUR 250 Million

EnBW Energie Baden-Württemberg AG, Karlsruhe, successfully increased the hybrid bond issued in October 2011, which had an initial volume of € 750 million, by a further € 250 million. The bond met great investor interest and was oversubscribed several times.

The terms of the increase correspond to those of the bond issued in October and the increase will, after a transitional period, be directly merged into the original bond. The term to maturity is 60 years with repayment rights every five years after the first interest payment date. Based on its terms and conditions, the bond is recognised as equity by some rating agencies. The transaction was arranged by Barclays Capital and Deutsche Bank.

The date of issue will be 2 April 2012, with repayment due on 2 April 2072. The bond is issued with a yield of 6.53 percent as of the first termination date on 2 April 2017.

The hybrid bond is part of the package of measures decided upon in 2011. It contributes to further strengthening equity and thus supports EnBW’s current A rating.

[mappress]

Offshore WIND staff, March 15, 2012; Image: enbw