By Susanna Moon
Chicago, Jan. 11 – Engie SA said it issued €1 billion of 1.375% green hybrid deeply subordinated perpetual bonds (Baa1/BBB/BBB+).
“Taking advantage of strong investor demand for higher yielding asset classes (including hybrid bonds), the coupon of the bond, callable as from April 2023, has been set at 1.375%, representing the lowest coupon rate ever achieved by a corporate issuer for a hybrid bond,” according to a company announcement.
Proceeds will be allocated to the group’s continued growth in renewable energy or energy efficiency projects, natural resources preservation projects, as well as research and development investments.
The bonds will replace the €600 million of 3.875% non-call 2018 issue and the £300 million of 4.625% non-call 2019 issue.
“Engie took advantage of the attractive market conditions to place its first green hybrid bond,” the release said.
Engie, formerly GDF Suez SA, is a Courbevoie, France-based natural gas and electricity supplier.
| Issuer: | Engie SA
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| Issue: | Green bonds
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| Amount: | €1 billion
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| Maturity: | Perpetual
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| Coupon: | 1.375%
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| Call option: | Beginning April 2023
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| Announcement date: | Moody’s: Baa1
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| S&P: BBB
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| Fitch: BBB+
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