RWE exercises right to call a subordinated hybrid bond issued in 2012 at the earliest cancellation date possible. The redemption relates to a GBP 750,000,000 hybrid bond (ISIN XS0652913988) with a coupon of 7.00 %. The bond will be redeemed at its nominal value. RWE is exercising its right to redeem on 20 March 2019, seven years after the bond was issued.
Including the Sterling bond cancelled as of March, RWE currently has a total of about € 2 billion in hybrid bonds outstanding. RWE already reduced the hybrid volume through redemptions and buybacks in 2017.
Dr. Markus Krebber, CFO of RWE AG, emphasizes, “RWE has a solid financial position and will improve it earnings prospects due to the envisaged asset swap with E.ON. Hence, our need for refinancing through hybrid bonds is further reduced.”
RWE will not replace the cancelled hybrid bond through a new hybrid bond issue.