Vattenfall issues GBP 250 million green hybrid bond

Vattenfall has successfully issued a GBP 250 million green fixed-rate hybrid bond. The issue was almost three times oversubscribed and the proceeds will finance eligible green projects that meet the requirements of Vattenfall’s green financing framework.

This is Vattenfall’s first hybrid bond issued since June 2021 and has a maturity of 60.25 years with the first reset date after 5.25 years. The transaction attracted an orderbook of above GBP 700 million. The coupon is 6.875%. Proceeds are earmarked for investments in the following four eligible categories under the Green Financing Framework dated May 2022: 1) Renewable energy, 2) Transmission and distribution of electricity, 3) Energy efficiency and 4) Clean transportation.

"The success of our first green hybrid bond since June 2021 once again underlines the broad-based support Vattenfall receives from investors to drive the energy transition forward", says Maria Paulinz, Head of Treasury at Vattenfall.

With this transaction, Vattenfall proactively manages its hybrid capital base ensuring a stable layer of rating agency equity credit. The Green hybrid capital reinforces the company’s sustainability commitment, provides cost efficient equity-like capital whilst supporting Vattenfall’s solid investment grade rating.

NatWest Markets acted as structuring advisor and Barclays, NatWest Markets and RBC Capital Markets as joint bookrunners on the bond issue.

The settlement date is 17 May 2023.

Fact box – Green GBP hybrid bond:

Size: GBP 250m
Maturity/Call: 60.25NC5.25
Issue Rating: Baa2 (Moody’s)/ BB+ (S&P)
Coupon 6.875%
Rating Agency Equity Treatment: 50 percent equity and 50 percent debt
Listing: Nasdaq Stockholm
Documentation: Standalone, Reg S
Governing law: Swedish law

For further information, please contact:

Johan Sahlqvist, Head of Group Control & Investor Relations +46 72 226 40 51 johan.sahlqvist@vattenfall.com

Attachments

See also

Vattenfall’s President and CEO Anna Borg

First quarter 2023: Good result development and continued fossil-free investments

Vattenfall has had a good start to 2023 with stable financial development. Thanks to a calmer energy market, we have been able to focus entirely on our strategy of investing in fossil-free p...

Read the full article
Anna Borg, Vattenfall’s President and CEO

Full-year report: 2022 – a challenging year

Russia's invasion of Ukraine had major consequences on an already strained energy market, which created major challenges. At the same time, we worked hard to support worried customers and en...

Read the full article
Anna Borg, Vattenfall’s President and CEO

First nine months 2022: Stable result and strong financial position in troubled times

The third quarter was characterised by the turbulent markets and there is major uncertainty ahead of the winter. Vattenfall’s financial position is however strong and the underlying results ...

Read the full article