Enel makes its return on hybrid bond market with a non-convertible bond, a perpetual hybrid subordinated with a value of 900 million euro, intended exclusively for institutional investors. There request was such as to overcome the 3 billion euros, three times the initial offer. On Piazza Affari, Enel shares gained 0,32% to 5,92 euros per share at 11am on February 21st.
This operation is part of the financial strategy adopted by the Enel group, aimed at optimizing the cost of capital to support its investment plans 2024-2026 Strategic Plan. Furthermore, the issue took advantage of the current favorable market conditions to bring forward the refinancing of the next maturities of the energy giant's hybrid instruments. In particular, the operation allowed the refinancing of the 900 million euro perpetual hybrid bond with a first call scheduled for February 2025 and a rate of 3,5%.
This issue was approved in accordance with the resolution of December 18, 2023 of the Company's Board of Directors, which authorized Enel to issue one or more non-convertible bonds in the form of hybrid subordinated securities by December 31, 2024.
Enel hybrid bond: placement details
The bond loan, structured in a single tranche of 900 million euros, is anon-convertible bond, subordinate, hybrid e perpetuates, without a defined expiry date, refundable only in the event of dissolution or liquidation of the group, as specified in the terms and conditions. A will be paid annual fixed interest of 4,75% until the first reset date (excluding) 27 May 2029, which coincides with the last date for the first optional refund. Thereafter, if not fully repaid, the bond will pay interest equal to the five-year euro mid-swap rate plus an initial margin of 212,9 basis points, which will increase by an additional 25 basis points starting May 27, 2034 and by an additional 75 basis points starting from May 27, 2049. The fixed interest payment will take place annually in May, starting from May 2024. The issue price has been set at 99,454% and the effective yield at the first reset date is 4,875% per annum.
The expected settlement date of the issue is 27 February 2024.
I titles will be listed on the regulated market of Irish Stock Exchange (Euronext Dublin). It is expected that they will receive a rating of Baa3/BB+/BBB- (Moody's/S&P's/Fitch) and an equity content of 50% from the rating agencies.
This issue was supported by a consortium of banks, with BBVA, BNP Paribas, Bank of America, Caixabank, Citi, Commerzbank, Goldman Sachs, HSBC, IMI-Intesa Sanpaolo, ING, JP Morgan, Natwest Markets, Santander and Unicredit acting as joint bookrunners.
