May 8 (Bloomberg) -- Enel SpA plans to sell 5 billion euros ($6.6 billion) of hybrid bonds “gradually” over a two-year period as the company seeks to strengthen its finances.
“We will take account of market developments and act accordingly each time,” Luigi Ferraris, chief financial officer of Italy’s biggest energy company, said today in an interview.
The company has also identified some buyers for assets, he said, declining to name them. Divestments may include minority stakes and some generation assets, the finance chief said.
Enel’s board of directors yesterday authorized the sale of as much as 5 billion euros of hybrid subordinated instruments by Dec. 31, 2014. The Rome-based company said the bonds may be placed with either institutional or retail investors. Enel, with net debt of 43.3 billion euros, became Europe’s most indebted energy company when it bought Spain’s Endesa SA in 2007.
The Italian company said yesterday it’s on target to cut debt to 37 billion euros next year. It plans 6 billion euros of asset sales and 4 billion euros of cost cuts through 2017.
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