RWE’s $2.3 Billion Hybrid Bond Biggest Deal Since ‘06

RWE AG, Germany’s second-biggest utility, sold 1.75 billion euros ($2.3 billion) of hybrid bonds in the biggest offering of the equity-like securities in Europe since 2006.

RWE’s perpetual notes were priced to yield 265 basis points more than the five-year benchmark swap rate, according to a banker involved in the sale. The Essen-based company can redeem the fixed-rate notes in 2015 and 2020. If the notes aren’t called within 10 years, the coupon changes to a floating rate equal to the initial spread plus 100 basis points more than the euro interbank offered rate.