GDF SUEZ accessed the US bond market for the first time in its history by launching a dual-tranche bond issue with maturities of 5 and 10 years and coupons of 1.625% and 2.875%, respectively.
The issue has the lowest coupon rates ever achieved by a foreign utility-sector company on the US market. It has been swapped into euros at an average interest rate of 1.39 %.
The magnitude of demand (more than US$8 billion) allowed the Group to set the overall size of the transaction at US$1.5 billion (approximately €1.16 billion), while reducing its borrowing cost by 35 basis points below the rate initially proposed. As a result, a more favorable interest rate was achieved by comparison to the Eurobond market.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ , stated: “This transaction is of strategic importance for the Group because it grants access to one of the world’s most liquid markets, a market which allowed companies to access financing even in difficult times. We are thus very satisfied to have access to this new investor base; it is a significant step in our policy of diversifying funding sources.” In order to achieve this diversification, GDF SUEZ thus far has accessed the debt markets in various currencies including euros, US dollars, Japanese yen, British pounds and Swiss francs.
In addition to the market’s clear interest in the transaction, the Group is very pleased to see the effectiveness of its business model noted by the professional investment community.
[mappress] LNG World News Staff, October 04, 2012