GDF SUEZ Completes Two Bond Issues (France)

Thanks to the quality of its rating and taking advantage of favorable market conditions, GDF SUEZ completed two bond issues Tuesday denominated in euro and sterling for €1 billion and £400 million respectively.

These new issues will partly be used to finance the tender offer of part of the Group’s bonds maturing in February 2013, January 2014, and June 2015.

The maturity of the €1 billion bond is January 2020, with a coupon of 3.125% p.a.

The £400 million issue increases the size of the 50-year bond issued by the Group in 2010 maturing in October 2060. This tap bears a 5% coupon and was swapped into euro at 4.7% fixed rate.  This issue will increase the outstanding total bond issue to £1.1 billion. It remains the market’s largest sterling-denominated corporate bond issue.

The tender offer concerns part of the three following bonds:

– a GDF SUEZ bond maturing in February 2013 with a 4.75% coupon,

– a GDF SUEZ bond maturing in January 2014 with a coupon of 6.25%,

– a Belgelec Finance bond maturing in June 2015, with a 5.125% coupon.

Isabelle Kocher, Executive Vice President, Finance, commented: “These operations illustrate the market’s confidence in the Group’s long-term prospects. They enable us to optimize the Group’s debt structure and to reduce its funding costs through early payment, to increase our liquidity and to extend the average debt maturity to close to 11 years.”

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Source: GDF SUEZ, November 9, 2011