New Enel operation to lighten the cost of debt and accelerate on sustainable finance goals. In detail, the financial subsidiary under Dutch law Enel Finance International (EFI) has concluded the Tender Offer on two outstanding US dollar denominated conventional bonds. The objective of the operation is the repurchase and subsequent cancellation of the bonds.
The first part concerns bonds from 2 billion dollars issued on May 22, 2017, maturing on May 25, 2027 and coupon of 3.625%; while the second from bond from 1.25 billion dollars issued on 11 September 2018, maturing on 14 June 2029 and coupon 4.875%. The transaction follows the collection of acceptances closed on 4 October last to the so-called early expiry date envisaged by the voluntary non-binding offer launched on 21 September.
The results of the operation
Overall, non-validly withdrawn subscriptions were received for the Early Expiry Date for an amount of approximately US $ 2.2 billion. Following these subscriptions, EFI has accepted and will repurchase conventional bonds for a total nominal amount of 1.47 billion dollars, thus exercising the right to decrease the maximum target amount originally set to $ 1.5 billion. EFI, on the other hand, did not accept any offer for the 1.25 billion dollar bonds issued on October 3, 2017, maturing April 6, 2028 and coupon 3.5%, initially the subject of the same tender offer.
Having reached the maximum amount indicated, EFI does not expect to accept any further offers that may be received until the expiry of the same Tender Offer, scheduled for October 19, 2021. This concludes the program for the 2021 repurchase of EFI’s conventional bonds, having a average cost of 1.5%, for a total amount of the program equivalent to approximately € 7.6 billion.
A step forward in the sustainable finance
The program, together with the Sustainability-Linked bond issues for a total amount equivalent to approximately € 10.1 billion and an average cost of 0.5%, has further accelerated the achievement of the Group objectives linked to the ratio between sustainable funding sources and total gross debt, set at 48% in 2023 and over 70% in 2030, and currently equal to approximately 50%, simultaneously reducing the cost of the Group’s debt.