Total issues hybrid bonds to finance development strategy

– By Alison Godswill

Kindly Share

Post Views: 111

Total issues hybrid bonds to finance development strategy

Total SE has successfully issued perpetual subordinated bonds in the amount of €3 billion for the funding of development strategy in the company.

According to the company, €1.5 billion at 1.625% coupon for the tranche with a 7 year first call date, while €1.5 billion at 2.125% coupon for the tranche with a 12 year first call date. The proceeds from the bonds will be used to finance its development strategy, mainly acquisitions, in renewables, in particular, €1.7 billion for the acquisition of a 20% interest in Adani Green Energy Limited.

It stated: “With a weighted average coupon of 1.875%, this issuance that was very well received by investors will allow the Group to finance its development in renewables at a reduced capital cost.”

Commenting on the development, Jean-Pierre Sbraire, Chief Financial Officer at Total, said: “These hybrid bonds provide a cost of capital comparable to that of pure players in renewables and is therefore suited to finance acquisitions in this business. These bonds will finance in a very competitive way our development in renewables, which is at the heart of our strategy to transform Total into a broad energy company.”

Total is a broad energy company that produces and markets fuels, natural gas and electricity. Our 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner, and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.

Kindly Share

Copyright @ TheDaily. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheDaily