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Enel, demand equal to three times the offer for the hybrid bond

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Enel, demand equal to three times the offer for the hybrid bond

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High demand equal to more than three times the supply. Enel has launched the issue of a non-convertible, subordinated hybrid bond for a total amount of 900 million euros.

The bond, perpetual and intended for institutional investors, allows for the early refinancing of the next maturities of the portfolio of hybrid instruments and reflects Enel’s financial strategy of optimizing the cost of capital to serve the industrial investments of the plan to 2026.

Debt refinancing

The operation, which refinanced the 900 million perpetual hybrid bond, was oversubscribed more than three times, totaling orders worth more than 3 billion euros.

The bond loan, underlines Enel, «structured in a single tranche of 900 million euros, is non-convertible subordinated perpetual hybrid, without fixed maturity and payable only in the event of dissolution or liquidation of the Company, as specified in the relevant terms and conditions».

Coupon at 4.75% until 2029

In detail, a fixed annual coupon of 4.750% will be paid until the first reset date (excluding) 27 May 2029, which corresponds to the last day for the first optional redemption. From that date, unless it has been fully repaid, the bond will accrue interest equal to the five-year Euro Mid Swap rate increased by an initial margin of 212.9 basis points, increased by a further margin of 25 basis points at starting from 27 May 2034 and a subsequent increase of a further 75 basis points from 27 May 2049. The fixed coupon is payable annually in arrears in the month of May, starting from May 2024. The issue price is set at 99.454% and the effective yield at the first reset date is 4.875% per year.

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