January 11 (Renewables Now) - French energy group Engie (EPA:ENGI) said on Thursday it has placed a EUR-1-billion (USD 1.19bn) hybrid green bond, in support of renewables and other projects.
The company’s first Deeply Subordinated Perpetual Bond bears a coupon of 1.375% and has a non-call period of 5.25 years. With it, Engie will replace a 3.875%, EUR-600-million bond and a EUR-300-million bond with a 4.625% coupon.
The proceeds will be used to support the development of renewable energy or energy efficiency projects, as well as natural resources preservation projects. Research and development activities in these areas are also in the list.
The bond has received ratings of Baa1, BBB and BBB+ from Moody's, S&P and Fitch respectively.
Engie noted that the 1.375% coupon on the bond is the lowest one set by a corporate issuer for a hybrid bond. Including this latest offering, the total issued amount of Engie’s green bonds stands at EUR 6.25 billion.
According to its website, the French energy group has 112.7 GW of installed power generation capacity, of which 21.5 GW comes from renewable energy sources.
(EUR 1.0 = USD 1.195)