Vattenfall has successfully raised £250m through a green fixed-rate hybrid bond issuance to fund its eligible green projects, such as renewable energy, electricity transmission and distribution, energy efficiency, and clean transportation.
The issue was almost three times oversubscribed, with an order book of over £700m.
This is Vattenfall’s first hybrid bond issuance since June 2021, and the bond has a maturity of 60.25 years with a first reset date after 5.25 years.
The coupon rate of the bond is 6.875%. The funds will be invested according to Vattenfall’s green financing framework.
Maria Paulinz, Head of Treasury at Vattenfall, said “The success of our first green hybrid bond since June 2021 once again underlines the broad-based support Vattenfall receives from investors to drive the energy transition forward.”
Vattenfall is taking proactive steps to manage its hybrid capital base through this transaction, which will help maintain a stable level of equity credit with rating agencies.
The new Green hybrid capital not only supports the company’s sustainability efforts but also offers cost-effective equity-like capital while upholding its investment grade rating.
The bond issue was facilitated by NatWest Markets as the structuring advisor and joint bookrunners, Barclays, NatWest Markets, and RBC Capital Markets.
The transaction is set to be settled on May 17th, 2023.
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