New Issue: EnBW prices €1 billion in dual tranches of resettable fixed-rate green notes due 2079

By Rebecca Melvin

New York, July 29 – EnBW Energie Baden-Wurttemberg AG priced on Monday €1 billion of green hybrid, or resettable fixed-rate subordinated notes in two equal tranches due 2079 (expected ratings: Baa2/BBB-/BBB), according to a market source.

A €500 million tranche of notes due Nov. 5, 2079 priced at par to yield 1 1/8% and with an initial credit spread of 142.5 basis points over mid-swaps. Pricing was tightened from initial price talk in the 1.875% area. The order book was about €2.6 billion at the time of final guidance.

These notes are non-callable until Aug. 5, 2024, and their first rate-reset date is Nov. 5, 2024. The notes are callable every day between the first call date and reset date, and then every annual interest payment date thereafter.

A €500 million tranche of notes due Aug. 5, 2079 priced at par to yield 1 5/8%, with pricing tightened from initial talk in the 2.5% area. The notes have an initial credit spread of 172.5 bps over mid-swaps. The order book was about €3.8 billion at the time of final guidance.

These notes are non-callable for eight years until May 5, 2027 and their first rate-reset date is Aug. 5, 2027.

The tranches also have rate step ups 25 bps on Nov. 5, 2029 and Aug. 5, 2032, respectively, and a second rate step up of 75 bps on Nov. 5, 2044 and Aug. 5, 2047, respectively.

The underwriters are Barclays, BayernLB, Citigroup, BNP Paribas, Deutsche Bank, HSBC and Morgan Stanley.

EnBW is an electric utilities company based in Karlsruhe, Germany.

Issuer:	EnBW Energies Baden-Wurttemberg AG
Issue:	Green, subordinated resettable fixed rate notes
Amount:	€1 billion
Bookrunners:	Barclays, BayernLB, Citigroup, BNP Paribas, Deutsche Bank, HSBC and Morgan Stanley
Pricing date:	July 29
Settlement date:	Aug. 5
Ratings:	Moody’s: Baa2
	S&P: BBB-
	Fitch: BBB
Distribution:	Regulation S
November 2079 notes
Amount:	€500 million
Maturity:	Nov. 5, 2079
Coupon:	1 1/8%
Price:	Par
Yield:	1 1/8%
Initial credit spread:	142.5 bps over mid-swaps
Call:	Non-callable for 5.25 years until Aug. 5, 2024 through first reset date, Nov. 5, 2924, and then every annual interest payment date thereafter
Rate reset dates:	First reset date is Nov. 5, 2024, then every five years thereafter
Step ups:	25 bps on Nov. 5, 2029, and 75 bps on Nov. 5, 2044
Talk:	1.875% area
August 2079 notes
Amount:	€500 million
Maturity:	Aug. 5, 2079
Coupon:	1 5/8%
Price:	Par
Yield:	1 5/8%
Initial credit spread:	172.5 bps over mid-swaps
Call:	Non-callable until May 5, 2027 through first reset date Aug. 5, 2027, and then every annual interest payment date thereafter
Rate reset dates:	First reset date is Aug. 5, 2027, then every five years thereafter
Step ups:	25 bps on Aug. 5, 2032 and 75 bps on Aug. 5, 2047
Talk:	2.5% area

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