Vattenfall Launches SEK 15 Bln Hybrid Bonds

Vattenfall has launched hybrid bonds of SEK 6 billion and EUR 1 billion (approximately SEK 15 billion combined) in order to refinance an existing hybrid bond of EUR 1 billion, issued in 2005.

The excess amount will be used for general corporate purposes. The issue of corporate hybrid bonds in Swedish kronor is the first ever.

“We are very pleased with this bond issue which met with very strong demand from both international and Swedish investors. It is particularly gratifying that with this transaction Vattenfall has opened up a market for hybrid bonds in Swedish kronor, which is positive for both the Swedish industry and Swedish investors,” said Johan Gyllenhoff, Vattenfall Group Treasurer.

As with Vattenfall’s existing hybrid bond, the new bonds will be accounted for as interest-bearing debt and be subordinated to Vattenfall’s other debt instruments.

The settlement date for the issue will be on 19 March 2015.