Today E.ON issued via E.ON International Finance B.V. a Pound Sterling benchmark bond with an aggregate principal amount of GBP 1.5 billion. The bond was significantly oversubscribed and successfully placed amongst a broad range of institutional investors.
The issue has two tranches with maturities of 12 and 30 years in volumes of GBP 600 million and GBP 900 million respectively. The 12-year tranche carries a coupon of 6 percent and is issued at a price of 99.352 percent. The 30-year tranche carries a coupon of 5.875 percent and is issued at a price of 99.744 percent. Joint bookrunners were Barclays Capital, HSBC and Merrill Lynch.
E.ON CFO Marcus Schenck: “This bond is the largest Pound Sterling issue of an industrial company over the last years. The transaction marks a very successful next step in our funding programme and is a clear demonstration of the support for E.ON’s strategy from investors.”That's a big 'ol bond. Credit crunch?
Not for this credit.