Veolia to redeem €1 billion, £400 million of perpetual hybrid debt

By Sarah Lizee

Olympia, Wash., March 15 – Veolia Environnement SA plans to redeem its €1 billion and £400 million deeply subordinated perpetual hybrid debt issued in January 2013, according to a press release.

The company said it took advantage of extremely favorable market conditions in 2017 to anticipate the repayment, which is expected to occur on April 16.

The instruments were issued to support the group's transformation and were aimed at strengthening its financial structure, being considered as 100% equity in the IFRS consolidated accounts and 50% equity by the rating agencies.

The company said that thanks to the success of its transformation and the improvement of its financial health, Veolia no longer needs the instruments and can save the associated coupon of €68 million per year, while maintaining an investment grade rating and significant financial flexibility.

Veolia is an environmental services provider based in Paris.

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