2023-11-13 20:42:00
By Alexandra Saintpierre Published on 11/13/2023 at 9:42 p.m.
Photo credit © Scania
(Boursier.com) — Veolia successfully issued 600 million euros of hybrid bonds, and purchased the Perp NC24 hybrid strain for the same amount.
Veolia’s operation benefited from an extremely positive reception from the quarterly results published on November 9 and from a favorable market window to anticipate the refinancing of a hybrid strain of 600 million euros planned for January 2024. This operation takes the form of an issue of super subordinated securities with an indefinite duration at 6% with a first ‘reset date’ in February 2029.
This good momentum was reflected in the order book, the size of which reached 3.4 billion euros. This strong demand allowed Veolia to substantially improve the conditions of the issue, and thus achieve a negative new issue premium compared to the fair value estimated by the secondary market.
“The high level of oversubscription, the quality of the investors and the very good conditions obtained demonstrate the very positive perception of the Veolia signature and its financial solidity,” estimates the management of the environmental services group.
Following this operation, Veolia’s stock of hybrid debt remains unchanged at €3.6 billion.
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