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.”