Belgium: Fluxys Plans to Issue New Bonds

Fluxys said that is currently preparing a new bond issue to attract additional external resources to finance its investment programme and optimise its balance sheet structure.

If the Financial Services and Markets Authority (FSMA) approves the official prospectus and if market conditions are favourable, Fluxys plans to very soon issue bonds with a par value of €1,000 and a maturity of six years, the company said in a release.

Fluxys aims to employ the planned bond issue to move towards a financial structure that is more in line with the Belgian regulatory framework (with a ratio of 1/3 equity to 2/3 borrowed funds).

The funds would also be used to finance projects in the company’s long-term investment programme in implementation since 2009 and adjusted annually to keep it on target with the needs of the natural gas market. For the next 10 years, the programme still represents an amount slightly in excess of €1.5 billion, with projects to further enhance the crossroads function of the Belgian grid, thus supporting security of supply and the well-functioning of the market.

[mappress]
LNG World News Staff, March 27, 2012; Image: Fluxys