GDF SUEZ of France recently concluded a double-tranche bond issue for 1.5 billion Euro:
- € 0.75 billion, maturing in July 2017, with a 1.5% coupon
- € 0.75 billion, maturing in July 2022, with a 2.625% coupon
The average coupon of the issue is just above 2% and the average maturity is 7.5 years. It was swapped to variable rates bringing the average cost of the financing to 1.37%.
The excellent momentum granted by the market, as illustrated by the large oversubscription of the books, is an additional proof of the support of the financial markets to GDF SUEZ development strategy.
This transaction constitutes a further step in the financing of the buyout of International Power minority shareholders completed on June 29 and for which the payment of the price of 418 pence per share will occur on 12 July 2012. This emission, added up to the 3 billion euro raised on May 22, will partially offset the €6 billion bank credit facility concluded for the buyout on May 4, 2012.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ commented : “Thanks to proactive and dynamic management of its balance sheet and close monitoring of financial markets, GDF SUEZ was able to seize very attractive conditions currently achievable by highly rated corporates on the European debt capital markets. These skills procure a significant competitive advantage in the current challenging environment.”
LNG World News Staff, July 18, 2012