EnBW places EUR-500m senior bond

German electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has issued a EUR-500-million (USD 587.3m) senior bond in its third bond placement for this year.

The bond has a term of 10 years and a coupon rate of 0.250%. EnBW said on Monday it was able to secure attractive terms thanks to “significant” investor demand, with the issuance being four times oversubscribed. The funds come to support the company's goal to transform into a “sustainable infrastructure partner” operating in various sectors, apart from energy. By 2025, it intends to pour around EUR 12 billion to expand its renewables, electricity grids, electric mobility and broadband businesses and to set foot in other sectors.

The banking syndicate in the latest issue included BNP Paribas SA (EPA:BNP) and NatWest Markets (FRA:VWVH), which acted as joint global coordinators, DZ BANK, Helaba and Mitsubishi UFJ Financial Group (NYSE:MUFG).

EnBW raised EUR 500 million from a senior bond sale in April and in June launched a green subordinated bond issue, also worth EUR 500 million. “As a result of the portfolio transformation over the last few years, EnBW now has a robust business model with stable cash flows in its operating business,” said CFO Thomas Kusterer.

(EUR 1.0 = USD 1.175)

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