Chicago, Jan. 17 – EDP - Energias de Portugal S.A priced €1 billion of deferrable and subordinated green hybrid capital securities (Ba2/BB+/BB+) on Monday, according to a market source.
The bonds priced at par and come with an April 23, 2083 maturity date.
The initial spread was mid-swaps plus 318.4 basis points.
Initial price talk had the notes coming with a yield in the 6¾% area. Guidance moved the notes into the 6 1/8% area.
The Regulation S bonds start with an initial 5.95% interest rate until April 23, 2028, the first reset date. Starting on the reset date and at five-year intervals the rate will reset to mid-swaps plus the relevant margin. There is a 25 bps step-up on April 23, 2033.
An additional 75 bps step-up will be added on April 23, 2048 if between the issue date and 30 days before April 23, 2028 EDP has an investment-grade rating from S&P Global Ratings and does not have a below-investment-grade rating on the 30th day before April 23, 2028, and otherwise April 23, 2043.
Global coordinators are Barclays and HSBC (billing and delivery).
Joining as joint lead managers are BNP Paribas, CaixaBank, CaixaBI, Citi, IMI-Intesa Sanpaolo, J.P. Morgan, MUFG, and Mizuho.
The final book was over €4.5 billion.
Proceeds will be used to finance or refinance EDP’s eligible green project portfolio.
The bonds will be listed on Euronext Dublin.
The issuer is a Portuguese electric utilities company, headquartered in Lisbon.
| Issuer: | EDP Energias de Portugal S.A
|
| Amount: | €1 billion
|
| Issue: | Deferrable subordinated green hybrid capital securities
|
| Maturity: | April 23, 2083
|
| Bookrunners: | Barclays, HSBC (billing and delivery), BNP Paribas, CaixaBank, CaixaBI, Citi, IMI-Intesa Sanpaolo, J.P. Morgan, MUFG, and Mizuho
|
| ESG coordinator: | Citi
|
| Coupon: | 5.95% initial rate; resets to mid-swaps plus margin with 25 bps starting April 23, 2028, with possibility of further step-up; resets at five-year intervals
|
| Price: | Par
|
| Yield: | 5.95%
|
| Spread: | Mid-swaps plus 318.4 bps
|
| Call features: | Make-whole call at Bunds plus 50 bps until first par call; at par during three months before Jan. 23, 2028; at par on any interest payment date thereafter
|
| Change of control: | At par
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| Trade date: | Jan. 16
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| Settlement date: | Jan. 23
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| Ratings: | Moody’s: Ba2
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | Regulation S
|
| Price talk: | Yield in the 6¾% area
|
| ISIN: | PTEDP4OM0025
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