GDF SUEZ pursues its dynamic balance sheet management
GDF SUEZ pursues financial operations targeting balance sheet optimization and cost of debt reduction implemented in the framework of the action plan announced last December.
The Group has recently launched several operations to buy back a portfolio of debt bearing an average coupon of circa 5%. After tender offers launched on June 3 on the high yield bond at the level of its UK subsidiary First Hydro and on June 20 on its so-called “Titres Participatifs”, GDF SUEZ announced today a tender offer to purchase for cash part of its outstanding corporate bonds due between 2015 and 2020. Those operations represent a potential amount about 1.7 billion euros.
GDF SUEZ also successfully issued today hybrid bonds for an aggregated amount equivalent to 1.7 billion euros, seizing the opportunity to raise a new source of funding. This transaction was executed through three tranches offering a 4.4% coupon on average:
- a 600 million euro tranche, callable as from July 2018 offering a 3.875% coupon;
- a 750 million euro tranche, callable as from July 2021 offering a 4.750% coupon;
- a 300 million sterling tranche, callable as from January 2019 offering a 4.625% coupon.
Isabelle Kocher, Executive Vice-President, Chief Financial Officer, comments : “The new dynamic debt management initiatives fit perfectly with its willingness to optimize its balance sheet as part of the overall strategic reshaping of the Group. Furthermore, it strengthens its financial structure and further improves its financial flexibility. Besides, the Group maintains its portfolio optimization program having an impact on net debt of 11 bn€ over 2013-2014, and its gross capex envelop between 7 and 8 bn€ per year over 2013-2015.”
GDF SUEZ develops its businesses (electricity, natural gas, services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 219,300 people worldwide and achieved revenues of €97 billion in 2012. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, Vigeo World 120, Vigeo Europe 120 and Vigeo France 20.