(1888PressRelease)
June 26, 2009 - One bond with a volume of 500 million GBP and a duration a term of 13 years and a further bond for 1 billion GBP with a term of 30 years. The bonds met with a high level of investor interest and were several times oversubscribed. RWE has thus taken one step further in its refinancing process for the planned takeover of Essent.
The bonds are issued with a coupon of 5.5% p.a. for the 13-year term and 6.125% for the 30-year term. The issuance prices are 99.156% and 98.862%, resulting in a return of 5.593% and 6.21% respectively. Thus, the two bonds are only 1.85% and 1.65% above comparable British government bonds. The book runners are Barclays, BNP Paribas and Credit Suisse.
This focus by RWE on long-term bonds is in line with investors’ interests and at the same time extends the company’s own maturities profile. The minimum purchase volume for the bonds is 50,000 GBP and they are therefore aimed at institutional British investors in particular, especially pension funds that are looking for attractive returns from safe issuers over a very long period for their pension payment commitments.
Jan-Peter Schwartz
Head of External Communications
T+49-201-12-15023
F+49-201-12-15094
http://www.rwe.com
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