EnBW issues a 500 million euro bond

Karlsruhe. On 11 October 2006, EnBW Energie Baden-Württemberg AG issued a bond amounting to 500 million euros on the capital market. The bond has a term of 10 years and serves to prematurely refinance a bond that is due to be repaid in February 2007.

“The huge demand once again of investors proves once more the high attractiveness and outstanding positioning of EnBW on the capital market. This is due to the ongoing success of EnBW and the continuity and robust planning achieved over the last three years,” said Prof. Dr. Utz Claassen, Chairman of the Board of Management of EnBW.

The bond was placed without an accompanying roadshow. However, in May of this year, the EnBW Board of Management had provided investors with detailed information about the company at the annual roadshow that does not depend on deals. Due to the huge demand, the bookbuilding phase was able to be completed in just 4 hours. The bond was significantly oversubscribed. With a credit spread of only 33 bp and a coupon of 4.25%, EnBW was able to issue the bond under attractive conditions. EnBW is thus making the most of the current capital market environment by shifting existing liabilities to a new bond, which is to its advantage.

"The short bookbuilding phase and quick processing of the transaction have a lot to do with the huge amount of trust investors have in EnBW," said Dr. Christian Holzherr, Chief Financial Officer of EnBW. "We hold ongoing talks with the capital market. In addition, the debt market honoured EnBW for not only achieving, but actually exceeding the yield guidelines and targets given to it. In this way, we have, only half way through the year, almost achieved our objective of sustainably cutting costs in the Group by one billion euros by the end of 2006.”

The transaction was managed by the Royal Bank of Scotland and Credit Suisse as a joint bookrunner.