Gas Natural Fenosa of Spain Closes Bond Issue

Gas Natural Fenosa of Spain Closes Bond Issue

Gas Natural Fenosa of Spain said it has closed a bonds issue on the Euromarket for 800 million euros, maturing in 2020. This issue was established with an annual coupon of 6% and a new bond issue price of 99.455% of par value.

Demand surpassed 4.6 million euros from a wide range of institutional investors, most notably from Germany, France and Great Britain, so that Spanish investors represented just 7% of the total. The issue, which was launched this morning, was made within the Euro Medium Term Notes (EMTN) programme, which the company renewed in November.

The funds received in this operation, whose disbursement is scheduled for 25 September, will serve to optimise the company’s financial structure, increase the capital market weight, lengthen the life of the debt and improve the maturities profile. All this will enable the company’s already ample liquidity to be increased.

Since June 2009, Gas Natural Fenosa has conducted almost 10 billion euros’ worth of issues, of which the majority, 9.6 billion euros, were carried out in European markets. The rest corresponds to debt issued in several Latin American countries where the company operates.

The average coupon of these 9.6 billion euros is 4.89%, issued on an average term of over seven years.

LNG World News Staff, September 12, 2012