EnBW issues benchmark bonds totalling 1.75 billion euros

Karlsruhe. EnBW Energie Baden-Württemberg AG, Karlsruhe, has issued the first benchmark bonds under its recently established 3 billion euro Debt Issuance Programme ("DIP") through its subsidiary EnBW International Finance B.V. The bonds, which comprise two series of benchmark bonds denominated in euros with maturities of 5 and 10 years respectively, were issued on 15 February 2002 and are aimed primarily at institutional investors at home and abroad.

EnBW joined forces with lead managers Barclays Capital and Deutsche Bank AG to stage a European roadshow in the run-up to the launch from 6 to 13 February 2002, in which EnBW presented the company and its bond programme to institutional investors in Frankfurt, Munich, London, Utrecht, The Hague, Brussels, Milan, Madrid and Paris.

"EnBW is pursuing a focused growth strategy. We are consistently expanding our presence throughout Europe in our core business area of energy", said Dr Reinhard Volk, financial director of EnBW, speaking during the roadshow in Frankfurt. He said that the new bonds were being issued to provide the company with a sound financial basis for the implementation of its business strategy. The solid financial profile of Germany's third largest energy supplier and its high credit ratings with the leading international rating agencies Standard & Poor's and Moody's will play a key role in helping the company achieve this aim. Its long-term (Standard & Poor´s: A+ stable outlook/Moody´s: A2 stable outlook) and short-term (Standard & Poor´s: A-1/ Moody´s: Prime-1) ratings relate both to the company and its bond programme.

On 28 January 2002 EnBW established a Debt Issuance Programme under which EnBW AG and the Netherlands-based EnBW International Finance B.V. are authorised to issue debt securities (guaranteed by EnBW AG). The DIP, which is listed on the Luxembourg Stock Exchange, is a standardised documentation platform for the issue of debt securities up to a total value of 3 billion euros. Both private placements and public syndicated bond issues may be used, and all major currencies and a range of maturities may be selected on a flexible basis.
In the second stage, EnBW AG launched the euro-denominated bonds totalling 750 million euros for a term of 5 years and 1 billion euros for a term of 10 years on 15 February 2002, which received a highly favourable response from investors. "The strong interest among institutional investors on the European capital markets shows that EnBW's growth strategy, financial profile and associated ratings are a convincing combination," said Dr. Reinhard Volk.

About EnBW AG

EnBW Energie Baden Württemberg AG is the third largest energy supplier in Germany, one of Europe's most extensively deregulated markets. EnBW also operates in the disposal and industry and services sectors. It is also active on the European market and has partnerships with a number of well-known companies. In 2001, EnBW recorded turnover of 7.8 billion euros (previous year: 5.8). The group operates in twelve countries and has 44,500 employees. The company sold 97.3 Terawatt-hours of electricity in 2001. EnBW has power plant capacities of approximately 13,900 MW.
The EnBW share is listed on the Frankfurt and Stuttgart stock exchanges. The company's principal shareholders are the German local authority partnership OEW with 34.5 per cent and the French EDF (Electricité de France) group, also with 34.5 per cent.

Following the liberalisation of the German energy market in 1998, EnBW was the first company to establish a business and sales structure for the supply of energy to the whole of Germany.

EnBW has 4.2 million customers in Germany. The EnBW subsidiary Yello Strom GmbH has won over 700,000 new residential customers throughout Germany in just two and a half years.