German developer EnBW has launched a corporate bond valued at €500m.
The company said it has been able to obtain “attractive terms” in the current market environment, which is “highly volatile” due to the COVID-19 pandemic.
The issue has a five-year term to maturity, ending on 17 April 2025, and a coupon rate of 0.625%.
BNP Paribas, Commerzbank, Deutsche Bank, HSBC and Unicredit comprised the banking syndicate for the transaction, which was up to nine times oversubscribed.
EnBW published its figures for the financial year 2019 at the end of March and has already met its 2020 earnings target at the end of 2019.
Earnings growth in the company’s renewables business rose 62.2% compared with 2018, boosted by onshore wind farm acquisitions in Sweden at the end of 2018, plus overall improvement in wind conditions at onshore and offshore wind farms in Germany.
Chief financial officer Thomas Kusterer said: “As a result of the portfolio transformation over the last few years, EnBW now has a robust business model with stable cash flows in its operating business.
“It is this which provides the basis – especially in the current situation – for the business confidence shown by our investors, who are now supporting our strategic development as an infrastructure partner.”