Total has successfully issued hybrid bonds to finance its development strategy in renewables

The proceeds from the bonds will be used to finance its development strategy, mainly acquisitions in renewables

Festival Net Zero 2021

Total SE has successfully issued perpetual subordinated bonds in the amount of €3 billion (£2.7bn):

  • €1.5 billion (£1.25bn) at 1.625% coupon for the tranche with a seven-year first call date
  • €1.5 billion (£1.25bn) at 2.125% coupon for the tranche with a twelve-year first call date

The proceeds from the bonds will be used to finance its development strategy, mainly acquisitions in renewables, in particular, €1.7 billion (£1.5bn) for the acquisition of a 20% interest in Adani Green Energy Limited.

With a weighted average coupon of 1.875%, this issuance that was very well received by investors will allow the Group to finance its development in renewables at a reduced capital cost.

Jean-Pierre Sbraire, Chief Financial Officer at Total, said: “These hybrid bonds provide a cost of capital comparable to that of pure players in renewables and is therefore suited to finance acquisitions in this business. These bonds will finance in a very competitive way our development in renewables, which is at the heart of our strategy to transform Total into a broad energy company.”

 

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