The Public Power Corporation (DEI) has successfully raised €600 million through a new 7-year bond offering, exceeding its initial target of €500 million and demonstrating strong market confidence in the company's future.
Investor demand was overwhelming, with the offering attracting bids totaling €2 billion, four times the initial amount.
The bond carries an interest rate of 4.625%, the lowest coupon rate achieved by a European company with a similar credit rating since February 2022. D
EI sources revealed that the spread achieved in this bond issue is the lowest in the company's history, surpassing previous offerings in 2020 and 2021 by approximately 200 basis points.
Notably, the majority of investors participating in the bond offering are long-term international players, highlighting the strong global interest in DEI.
The successful bond issuance comes at a time when DEI is not facing any immediate debt refinancing pressures, as its existing bonds mature in 2026 and 2028.
The new bond, maturing in 2031, will trade alongside these existing bonds, further underscoring investor confidence in DEI's long-term prospects.
DEI plans to utilize the €600 million raised to fuel its ambitious investment plans, particularly in renewable energy sources, network upgrades, and new business ventures.
The company aims to invest a total of €9 billion over the next three years, solidifying its position as a key player in the green energy transition. With recent expansion into the Romanian market, DEI has become the largest energy company in Southeastern Europe.
The company is targeting €3 billion in EBITDA from its diverse operations, aiming to enhance its financial resilience and navigate future challenges effectively.
DEI intends to list the new bonds on the Euronext Dublin stock exchange or another suitable European market to facilitate trading.
The successful bond offering marks a significant milestone for DEI, providing it with the financial firepower to pursue its growth strategy and contribute to the evolving energy landscape.