Veolia Successfully Taps the Hybrid Bond Market Again

Rhea-AI Summary

Veolia has issued EUR 500 million of hybrid debt with a 2% coupon until February 2028. This issuance attracted strong interest, with an order book totaling EUR 3.4 billion. This oversubscription allowed Veolia to set the pricing with a negative new issue concession of approximately -10 bp compared to secondary market pricing. The proceeds will be used for general corporate purposes and reflect Veolia's solid credit quality and ongoing commitment to ecological transformation.

Positive

• Successful issuance of EUR 500 million in hybrid debt.
• Strong demand with an oversubscription of EUR 3.4 billion.
• Achieved negative new issue concession of around -10 bp.
• Reflects positive credit quality and investor confidence.

Negative

• None.

PARIS--(BUSINESS WIRE)-- Regulatory News:

Veolia (Paris:VIE) has successfully issued EUR 500 million of hybrid debt bearing a coupon of 2 % until its first reset date in February 2028.

The notes are structured as deeply subordinated perpetual hybrid notes.

The transaction was very positively welcomed by the corporate hybrid bond market, which had been shut for a month. The strong demand led to a sizeable orderbook (up to EUR 3.4 billion), which enabled Veolia to materially improve the pricing of the issuance, and reach a negative new issue concession of around -10 bp compared to the fair value priced by the secondary market.

The high level of oversubscription, the quality of the investor base and the outstanding conditions that were achieved are signals of the significant appreciation of Veolia’s credit quality, and of the credibility of Veolia’s project of combining forces with Suez in order to create the World Champion of Ecological Transformation.

The proceeds of this issuance will be used for General Corporate Purposes.

...

Veolia group aims to be the benchmark company for ecological transformation. With nearly 179,000 employees worldwide, the Group designs and provides game-changing solutions that are both useful and practical for water, waste and energy management. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and replenish them. In 2020, the Veolia group supplied 95 million people with drinking water and 62 million people with wastewater service, produced nearly 43 million megawatt hours of energy and treated 47 million metric tons of waste. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €26.010 billion in 2020. www.veolia.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20211108005891/en/

Veolia Group Press Relations

Laurent Obadia - Evgeniya Mazalova

Emilie Dupas

Tel. + 33 (0) 1 85 57 86 25/ 33 33

presse.groupe@veolia.com

Analysts & Investors

Ronald Wasylec - Ariane de Lamaze

Tel. + 33 (0)1 8557 8476 / 8480

investor-relations@veolia.com

Source: Veolia Environnement

FAQ

What was the amount of hybrid debt issued by Veolia?

Veolia issued EUR 500 million in hybrid debt.

What is the coupon rate for Veolia's hybrid debt?

The coupon rate for Veolia's hybrid debt is 2%.

What was the oversubscription amount for Veolia's debt issuance?

The oversubscription amount for Veolia's debt issuance was EUR 3.4 billion.

When is the first reset date for Veolia's hybrid debt?

The first reset date for Veolia's hybrid debt is in February 2028.

What will Veolia use the proceeds from the debt issuance for?

Veolia will use the proceeds from the debt issuance for general corporate purposes.