Eni issues hybrid bonds worth €1.5 billion to strengthen financial structure
Eni has launched two new subordinated hybrid perpetual bonds with a combined face value of €1.5 billion.
These bonds were placed on the European bond market and attracted approximately 5 billion euros in orders. Interest comes mainly from institutional investors in the UK, Germany, France and Italy.
The two bond issuances are aimed at strengthening Eni's financial structure and are in line with the company's commitment to making hybrid bonds a permanent part of its capital structure.
The first tranche of new hybrid bonds is valued at €900 million and will be reissued at a price of 99.354% and an annual interest rate of 4.500% until the first reset date, April 21, 2031.
If not redeemed early, the coupon will reset every five years from that date, based on the prevailing five-year Euro medium-term swap rate plus an initial margin of 208.3 basis points. From April 21, 2036, the margin will increase by 25 basis points, and from April 21, 2051, it will increase by an additional 75 basis points.
The second bond was issued at a price of 600 million euros, with a reissue price of 99.114% and an annual coupon rate of 4.875% until the first reset date on April 21, 2034.
Similar to the first tranche, the coupon will reset every five years and is based on the five-year Euro mid-swap rate plus an initial margin of 239.9 basis points, in increments of 25 basis points from April 21, 2039 basis points and will increase by another 75 basis points from April 21, 2039. April 21, 2054.
Both bonds are governed by English law and will trade on the Luxembourg Stock Exchange, with settlement expected on January 21, 2025.
Eni is issuing the new hybrid bond in partnership with a consortium of banks including Across Bank, Barclays, BBVA, Deutsche Bank, Goldman Sachs International, HSBC, Mediobanca, MUFG, Societe Generale Corporate & investment bank and UniCredit. Joint Lead Manager.
At the same time, Eni has launched a public purchase offer for its existing EUR 1.5 billion perpetual hybrid bonds, which have a first call date in October 2025 and an annual interest rate of 2.625%.
The maximum acceptance amount for the tender offer is set at €1.5 billion, matching the overall face value of the new hybrid bonds.
The tender offer is backed by a consortium of banks including Barclays, Goldman Sachs International, HSBC and UniCredit, which will act as dealer managers.
In December 2024, Eni signed a contract with the Ministry of Mines, Petroleum and Energy of Côte d'Ivoire to acquire four new offshore exploration blocks, followed by the start of the second phase of production at the Baleine field offshore Ivory Coast (Côte d'Ivoire) in December 2024 .
“Eni launches hybrid bonds worth €1.5 billion to strengthen financial structure” was originally created and published by Offshore Technology, a brand of GlobalData.