EDP wants to repurchase 1,000 million euros of subordinated debt maturing in 2083, inviting investors holding these instruments to make sale offers, according to a statement sent this Monday to the Securities Market Commission (CMVM).
At the same time, the energy company is preparing a new bond issue, the proceeds of which will be allocated “to the EDP Group’s eligible ‘Green’ assets”.
According to him, this new series of obligations – the “New EU Green Notes” or “New Notes” – “are not guaranteed (‘unsecured‘), being senior to EDP’s common shares and other subordinated instruments and subordinated to its senior debt obligations”.
According to the financial news agency Bloomberg, the new bonds will be issued with a term of 30 years and an interest rate close to 4.875%, with repayment not being possible before the first seven years of the term (‘non callable’).
In the statement released today, the energy company states that the objective of the debt buyback offer and the issuance of the “New Notes” is to “proactively manage EDP’s hybrid instruments, keeping stable the amount of EDP’s hybrid instruments that benefit from the ‘intermediate equity content’ classification assigned by risk rating agencies”.
EDP also emphasizes that the acquisition of debt securities “is subject, among other factors, to the success of the placement of the ‘New Notes’”.