EDF : EDF : EDF successfully launches its inaugural hybrid bond issuance
This press release and the information contained herein are not being issued
and may not be distributed in the United States of America, Canada, Japan or
EDF SUCCESSFULLY LAUNCHES ITS INAUGURAL HYBRID BOND ISSUANCE
· Equivalent €4 billion achieved in € and £ tranches
· US $ tranche to follow
EDF has today successfully launched its inaugural hybrid bond issuance in
euros and sterling:
o€1.25 billion at 4.25% coupon for the tranche with a 7-year first call
o€1.25 billion at 5.375% coupon for the tranche with a 12-year first call
o£1.25 billion at 6% coupon for the tranche with a 13-year first call date
This hybrid bond issuance has been extremely well received by institutional
investors and was several times oversubscribed on each tranche. As already
announced, EDF is also planning an inaugural hybrid tranche in USD in the
coming days. As a reminder, hybrid capital securities are structured as
perpetual instruments and are subordinated to all senior creditors, which
explains a higher coupon than senior bonds. Under IFRS, these instruments are
classified as equity.
The Group, which uses this financing instrument for the first time, considers
it as an optimal asset liability management tool given the long duration of
its assets and the long lead times of its industrial projects.
EDF has a clear industrial strategy focused on regulated activities and low
exposure to volatile commodity markets and has more than €11 billion^(1) of
assets under development which will contribute to future growth.
In that context, by using its hybrid issuance capacity, EDF can strengthen its
capital structure over the investment cycle in a flexible and cost efficient
way. Hybrid bond issuance will also allow the Group to further diversify its
funding sources on the capital markets.
(1) at the end of June 2012
The EDF Group, one of the leaders in the European energy market, is an
integrated energy company active in all areas of the business: generation,
transmission, distribution, energy supply and trading. The Group is the
leading electricity producer in Europe. In France, it has mainly nuclear and
hydraulic production facilities where 96.5% of the electricity output is
EDF's transmission and distribution subsidiaries in France operate 1,285,000
km of low and medium voltage overhead and underground electricity lines and
around 100,000 km of high and very high voltage networks. The Group is
involved in supplying energy and services to approximately 27.9 million
customers in France. The Group generated consolidated sales of € 65.3 billion
in 2011, of which 43.1% was achieved outside of France. EDF is listed on the
Paris Stock Exchange and is a member of the CAC 40 index.
This press release does not constitute an offer to sell securities, or a
solicitation of an offer to buy securities, in the United States of America.
Securities may not be offered or sold in the United States of America absent
registration or an exemption from registration under the U.S. Securities Act
of 1933, as amended (the "Securities Act"). The securities of Electricité de
France SA described herein have not been and will not be registered under the
Securities Act, or the laws of any State, and may not be offered or sold
within the United States or to a U.S. Person, except pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act and applicable State laws. Electricité de France SA does not
intend to register any portion of the offering in the United States or conduct
a public offering of securities in the United States.
Carole Trivi : +33(1) 40 42 44 19
Analysts et Investors
Kader Hidra & Carine de Boissezon : +33(1) 40 42 45 53
David Newhouse (US investors): +33 (1) 40 42 32 45
Hybrid bond issuance
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information contained therein.
Source: EDF via Thomson Reuters ONE
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