RWE has successfully issued a hybrid bond with a total volume of €1 billion. The bond was issued in two tranches of €500 million each, with 30-year maturities and first call dates of 5.25 years and 8 years, respectively. For the first tranche, the yield-to-maturity amounts to 4.2%, based on a coupon of 4.125% p.a. and an issuance price of 99.653%. For the second tranche, the yield-to-maturity amounts to 4.7%, based on a coupon of 4.625% p.a. and an issuance price of 99.509%.
The placement was met with very strong investor interest and the order book was more than 10 times oversubscribed at €10.5 billion.
With this issuance, RWE re-enters the hybrid bond market, further diversifying its funding options to finance its investment programme. The company last used this financing instrument in 2015.
The hybrid bond strengthens RWE’s balance sheet as the rating agencies Moody’s and Fitch both classify it as 50% equity. It is rated Baa3 by Moody’s and BBB- by Fitch.
The company intends to use the net proceeds for funding of its investment programme in accordance with its Green Financing Framework.
Information on RWE’s outstanding bonds and credit rating can be found here.