New EnBW corporate bond extremely attractive for the capital market
Long-term placement with investors and high demand underline market confidence
Karlsruhe. EnBW Energie Baden-Württemberg AG yesterday issued a bond with a volume of 500 million euros on the capital market. The bond has a term of slightly more than 20 years and serves to extend the debt maturity profile of EnBW. In this way, EnBW is making use of the attractive capital market environment to restructure existing short-term liabilities in the form of a long-term bond.
"The extremely high demand among investors impressively underlines the widespread appeal and excellent positioning of EnBW in the capital market. To our great satisfaction, it also reflects considerably improved performance capability on the operating front and the highly dynamic process of change at EnBW as documented in the business figures for the first nine months of 2004", says Prof. Dr. Utz Claassen, CEO of EnBW.
The bond was placed without an accompanying roadshow. Investors were informed about EnBW and the bond issue via a conference call. Due to the high demand, bookbuilding was closed after just four hours with six-fold oversubscription. Price fixing was extremely advantageous for EnBW at 56bp above the corresponding mid-swap rate and below the price range communicated during the bookbuilding process. The bond carries a 4.875% coupon, which is highly attractive from the point of view of EnBW.
"The precondition and the foundation for the trust that the investors have placed in us is the extremely successful track record of restructuring and consolidation to date at EnBW as well as the group's systematic focus on its core business activities. The extremely high demand and the unusually short bookbuilding phase compared to the bonds of other companies are also the result of our policy of transparent communication vis-à-vis the capital market and the way this policy is consistently tailored to the needs of investors", says Ingo Peter Voigt, General Executive Director for Treasury and Investor Relations.
The transaction was managed by Barclays Capital, Citigroup and Société Générale as joint bookrunners.