Today, Naturgy has successfully closed two senior unsecured bond issues for a total of €1 billion, distributed in two tranches of €500 million each, with maturities of 6 and 10 years respectively.
Demand from the investment community was strong with around 4x the amount of the issue, illustrating strong investor support for Naturgy’s financial strength. Around 140 investors from various geographies participated in the issue.
This high level of interest has enabled the Group to obtain very competitive financing terms. The first tranche, amounting to €500 million and maturing in 6 years, offers an annual coupon of 3.375%. The second, for the same amount of €500 million with a 10-year maturity, offers an annual coupon of 3.875%.
These issues are part of the company’s €12 billion Euro Medium Term Note (EMTN) programme.
Naturgy has also launched an offer to buy back several series of its outstanding senior bonds and subordinated debentures limited to a maximum of €1 billion. With these operations, the company improves its capital structure, lengthening the average life of existing debt and managing its maturity profile.