Veolia Environnement Announces the Success of the Issuance of Subordinated
Perpetual Hybrid Debt in Euros and Pound Sterling
PARIS -- January 10, 2013
Regulatory News :
After meeting approximately 150 investors, primarily in continental Europe and
the United Kingdom, Veolia Environnement (Paris:VIE) launched the issuance of
deeply subordinated perpetual hybrid debt in euros and pound sterling,
callable beginning April 2018. Given the strong final demand, which exceeded
€9 billion for the two tranches and an order book of more than 600 orders,
Veolia Environnement issued €1 billion at a 4.5% yield for the tranche in
euros and £400 million at a 4.875% yield for the tranche in sterling, fixing
historically low interest rates. This demand reflects investor confidence in
the financial strength of Veolia Environnement.
This operation allows the Company to reinforce its financial structure in
conjunction with its transformation while strengthening credit ratios. Ratings
agencies consider that half of the issued amount will result in debt
reduction^1. In addition this issuance diversifies the currencies of the
Company’s equity and diversifies the Company’s investor base.
This issuance will be treated as equity under the consolidated IFRS accounts.
As a result, the debt reduction objectives communicated during the last
Investor Day on December 6, 2011 will therefore be adjusted to take into
account the impact of this issuance.
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With more than 330,000 employees the
company has operations all around the world and provides tailored solutions to
meet the needs of municipal and industrial customers in four complementary
segments: water management, waste management, energy management and passenger
transportation. Veolia Environnement recorded revenue of €29.6 billion* in
* Excluding VeoliaTransdev revenues currently under divestment
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris.
This press release contains “forward-looking statements” within the meaning of
the provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These statements are based on management’s current expectations or beliefs and
are subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. These factors and uncertainties in particular include risks
related to customary provisions of divesture transactions and those described
in the documents Veolia Environnement has filed with the U.S. Securities and
Exchange Commission. Veolia Environnement does not undertake, nor does it
have, any obligation to provide updates or to revise any forward-looking
statements. Investors and security holders may obtain a free copy of documents
filed by Veolia Environnement with the U.S. Securities and Exchange Commission
from Veolia Environnement.
Press release also available on our web site: http://www.finance.veolia.com
^1 In its press release issued January 4, 2013 S&P assigned a BBB- rating to
the hybrid and 50% equity content until April 2018. In its press release
issued January 7, 2013, Moody’s assigned a Baa3 rating and 50% equity content.
Analyst and institutional investor contact:
+33 1 71 75 12 23
US Investors contact
Terri Anne Powers
Tel +1 312-552-2890
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