Accompanying Naturgy, Repsol and EDP in highly demand bond issuances

22/04/2020

Societe Generale accompanies Naturgy, Repsol and EDP in highly demand bond issuances for EUR 3.25 bn

Spanish and Portuguese issuers in the energy sector have successfully tested capital markets in an environment negatively impacted by Covid-19. Big corporates like Repsol, Naturgy and Energias de Portugal (EDP) launched highly demanded bond issuances this month proving their capacity to appeal to investors even in turbulent times. The three companies issued bonds for a total of EUR 3.25 bn euros. Societe Generale proudly accompanied these clients as joint bookrunner of the three deals. 

Naturgy, one of the leading multinational companies in the gas and electricity sector, launched an inaugural EUR 1bn 5 year senior unsecured bond. The transaction gathered EUR 3.3bn of orders and was oversuscribed 3.3 times. The deal reflected the confidence the market has in the company, with a final pricing at midswap+155bps.

Repsol, an integrated global energy company based in Spain, proved its capability to raise EUR 1.5bn across 2 tranches with a strong book of around EUR 4bn of total orders. The company issued a EUR 750 million 5 year bond that was closed at midswap+220bps and a EUR 750 million 10 year issuance with a final spread of midswap+265bps.  

Finally, EDP, Portugal’s largest utility and one of the largest energy operators in the Iberian peninsula, issued a new EUR 750m 7-year Green bond. This is the company’s second transaction in the year and it was also highly demanded. The deals was oversuscribed 7,2 times with a final spread of midswap + 180 basis points proving the confidence in the company and the high interest investors have for green bonds.
 

«  We are proud to accompany our clients and work closely with them to respond to their needs in these difficult times.  »

Fernando García
Head of DCM for Spain and Portugal