Total Has Successfully Issued Hybrid Bonds To Finance Its Development Strategy in Renewables
Total SE today successfully issued perpetual subordinated bonds in the amount of €3 billion:
- €1.5 billion at 1.625% coupon for the tranche with a 7 year first call date
- €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.
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.
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.
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