EnBW covers its financial needs with a € 1.500 million dual tranche bond issuance

Karlsruhe. EnBW Energie Baden-Württemberg AG, Karlsruhe, today issued two bonds with a total volume of € 1.5 billion via its subsidiary EnBW International Finance B.V. The bonds have terms of five and ten years respectively and serve to finance EnBW’s investment programme.

The transaction was managed by a banking syndicate comprising Barclays Capital, Deutsche Bank, Landesbank Baden-Württemberg and Société Générale as joint book runners. The bond issue date will be 20 November 2008 and repayment will be due on 20 November 2013 and 20 November 2018 respectively. The bonds are equipped with coupons of 6.000 and 6.875 per cent respectively and were placed with long-term investors via midswaps with a credit spread of 230 and 270 bp.

The bonds were placed without an accompanying roadshow. In March of this year, EnBW had provided investors with comprehensive information about the company at the annual non-deal roadshow. In spite of the present difficult situation on the international finance markets, the bookbuilding phase was able to be completed within just one hour thanks to the high demand. The bonds were significantly oversubscribed.

“The transaction today demonstrates that EnBW is able to refinance itself even in the present, difficult capital market environment. We thank the investors for the trust they have placed in us, which we have earned through our good investor relations,” said Hans-Peter Villis, CEO of EnBW. Ingo Peter Voigt, Senior Vice President Head of Finance/Investor Relations, adds: “The debt market is responding to our satisfactory earnings power and the good earnings as documented by the nine-monthly financial report published by EnBW today.”

The key bond characteristics at a glance: