EnBW issues two bonds with terms of 6 and 30 years

Karlsruhe. Via its subsidiary EnBW International Finance B.V., EnBW Energie Baden-Württemberg AG, Karlsruhe yesterday issued two corporate bonds with a total value of 1.35 billion EUR: one for 750 million EUR with a fixed term to maturity of 6 years and one for a further 600 million EUR with a fixed term to maturity of 30 years. These two bonds, both with a denomination of 1000 EUR, will be used by EnBW to finance investments and acquisitions.

The transaction was led by a banking syndicate consisting of BNP Paribas, Commerzbank AG, Morgan Stanley and Royal Bank of Scotland as joint lead managers. In addition and in their capacity as co-lead managers, DZ-Bank, LBBW and Unicredit have approached regional investors, otherwise known as "2nd tier" investors. “The precise fit of the structure for EnBW has been instrumental in the success of the transaction,” explains Dr. Rudolf Schulten, Chief Financial Officer at EnBW.

The issue date will be 7 July 2009, with repayment due on 7 July 2013 and 7 July 2039 respectively. Both EnBW bonds come with a coupon of 4,125 and 6,125 per cent respectively. With a credit spread of 105 and 215 base points above mid-swap, the bonds were successfully placed with long-term investors.

"With this transaction EnBW re-opened the EUR market for corporate bonds with very long maturities. EnBW is proud that many investors have such a high level of confidence in our strategy", explains Hans-Peter Villis, Chairman and CEO of EnBW.

In March of this year EnBW provided investors with detailed information about the company at its annual roadshow, allowing the bonds to be placed without an accompanying roadshow. Investor interest was high and due to the level of demand book building was closed within a few minutes, the bonds being oversubscribed several times.