The placement of the new Enel hybrid bond started this morning, 1 September. In the afternoon, the book reports orders for 3,5 billion, so that the placement amount will rise to 600 million. The initial annual coupon was set at 2,250%. These are the final data of the operation, released by Radiocor.
It is a perpetual hybrid bond loan in euro with the first possible repayment term set at March 2027.
The expected amount was equal to 500 million euros and the price guidance provided at the start of the operation was yield of 2,875%, now filed after strong demand from investors.
The rate set today will be paid until March 2027 performance to be reviewed every 5 years based on midswap with an additional spread.
At the same time, Enel launched a voluntary, non-binding offer to repurchase the hybrid bonds maturing in 2076, with the aim of repurchasing a total amount of 200 million pounds sterling, it being understood that the Company reserves the right to increase or decrease said amount
The giants of the banking sector are involved in the operation: Bbva, Bnp Paribas, Credit Agricole, Goldman Sachs, JpMorgan, Santander, Societe Generale and Unicredit.
Moody's assigned a Ba1 long-term rating to Enel's new hybrid bond. The outlook is positive. A BBB- rating is expected from S&P, while a BBB rating from Fitch.
We recall that on June 10, Enel's board of directors gave the go-ahead for the issue, by December 31, 2021, of one or more non-convertible subordinated hybrid bonds, for a maximum amount equal to the countervalue of 1,5 billion euros . The bonds will be placed exclusively with EU and non-EU institutional investors, also through private placements and will be used to refinance outstanding hybrid bonds for which, starting from 2020, the early repayment option will become exercisable
Meantime at Piazza Affari, Enel shares are up 0,34 per cent to 7,615 euros. The performance beats that of the Ftse Mib which, after yesterday's fall, 31 August, is up 0,19% to 19.671 points driven by banking sector stocks and Atlantia (+1,7%).
