- We are pleased with the investor diversification achieved with this transaction together with our hybrid bond issue in March 2015. The benefit for Vattenfall to issue hybrid bonds is that it strengthens the company's financial flexibility as hybrid capital typically is treated partly as equity, says Johan Gyllenhoff, Vattenfall Group Treasurer.
This is Vattenfall’s first ever hybrid bond denominated in USD, placed under Regulation S outside the U.S.
As with Vattenfall's existing hybrid bonds, the new bonds will be accounted for as interest-bearing debt and be subordinated to Vattenfall's other debt instruments. Vattenfall expects rating agencies Moody's and Standard & Poor's to classify 50% of the hybrid bonds as equity when calculating credit ratios.
Vattenfall expects the bonds to be assigned a credit rating of Baa2 by Moody's and BB+ by Standard & Poor's, which is two and three notches respectively below Vattenfall AB's credit rating for senior debt.
The settlement date for the issue will be on 19 November 2015.
The hybrid bond was issued in a single tranche:
(to first call date)
||First call date
||After 8 years
Deutsche Bank acted as Sole Structuring Bank and Sole Bookrunner
Vattenfall discloses this information pursuant to the Swedish Securities Market Act.
For further information, please contact:
Johan Gyllenhoff, Group Treasurer, +46 (0)8 739 6513, [email protected]
Klaus Aurich, Head of Investor relations, +46 (0)8 739 6514, [email protected]
From Vattenfall's Press Office, telephone: +46 8 739 50 10, [email protected].
Vattenfall is a Swedish owned energy company with operations in Sweden, Germany, the Netherlands, Denmark, UK and Finland. Vattenfall’s vision s to create a strong and diversified European energy portfolio and to be among the leaders in developing an environmentally sustainable energy system.