Engie: Raising 750 million at zero, Engie sets a record in the corporate world

(BFM Bourse) – The French electricity, natural gas and energy services provider has recently issued 750 million euros worth of bonds at 7.5 years, at a rate of interest of … 0%. While many states now borrow interest-free or even negative interest rates, never has a company obtained such a low coupon for such a long time.

Why deprive yourself? Engie, who suffered last June a degradation of its credit rating by Moody's (admittedly only for a technical reason, the agency considering that the PACTE law entails a decrease in implicit support from the French state), however comes from to sign a record by raising 750 million euros on the bond market, at zero rate.

Securities offered last week to institutional investors, will be repaid after 7 and a half years, without the group pays the slightest euro interest. This is the lowest coupon ever reached by a corporate issuer (non-financial company) on such a long maturity, said Monday morning the group in a statement.

"Despite a very active bond market, the order book proved to be very diversified and extremely strong, which made it possible to tighten the conditions significantly while the financial environment remains marked by macroeconomic and geopolitical uncertainties. the quality of Engie's signature played a decisive role in the success of this transaction ", considers the company.

"Investors trust us"

"Engie's balance sheet is solid and our strategy is paying off, investors trust us, which allows us to benefit from competitive financing and to effectively pursue our development objectives," said Judith Hartmann, Chief Financial Officer and Chief Financial Officer. Deputy Director.

At the end of June, the group's net financial debt stood at 26.1 billion euros, weighed down in particular by the acquisition of TAG.

Engie is rated "A-" by S & P, A by Fitch and therefore A3 (instead of A2) by Moody's, these ratings remaining in the global category A that the company is targeting.

Guillaume Bayre – © 2019 BFM Stock Exchange