(Alliance News) - Enel Spa announced Tuesday that it has successfully launched on the European market the issuance of a EUR900 million non-convertible, subordinated hybrid perpetual bond with a euro denomination to institutional investors.

The bond received oversubscription requests more than 3 times, totaling orders amounting to more than EUR3 billion.

In detail, the transaction refinanced the EUR900 million equityaccounted perpetual hybrid bond with first call date in February 2025 and a coupon of 3.500 percent.

The issue price is set at 99.454% and the effective yield at the first reset date is 4.875% per annum.

The expected settlement date is Feb. 27, and the securities will be listed on the regulated market of the Irish Stock Exchange.

The company also expects the securities to be assigned a rating of Baa3/BB+/BBB- and equity content of 50 percent by the agencies Moody's, S&P's and Fitch.

The transaction reflects Enel Group's financial strategy, a company says in a note, "aimed at optimizing the cost of capital to serve the industrial investments of the 2024-2026 Strategic Plan."

The issue also seizes "the favorable window offered by current market conditions to refinance the upcoming maturities of the company's portfolio of hybrid instruments in advance."

The transaction is carried out in execution of the Dec. 18, 2023 resolution of the company's board of directors, which mandated the issuance by Enel, by Dec. 31, 2024, of one or more nonconvertible bonds in the form of hybrid subordinated securities.

Enel's stock closed Tuesday in

By Chiara Bruschi, Alliance News reporter

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