Belgian TSO Raises $411mn in Debt
Fluxys Belgium has successfully issued two bonds with a total nominal value of €350mn ($412mn) at historically low credit spreads and for long-term maturities. Total market appetite reached €880mn, which reconfirms the confidence of European institutional investors in Fluxys Belgium’s credit quality and the key role of the Belgian natural gas grid as crossroads for northwestern Europe, the company said October 4.
The bond is split into two tranches: A €300mn 10-year tranche priced at a coupon of 1.75% (87 basis points over midswap) and maturing in October 2027 and a €50mn 15-year tranche priced at a coupon of 2.375% (105 basis points over midswap) and maturing in October 2032.
The bonds are settled through the securities settlement system of the National Bank of Belgium and will be listed on Euronext Brussels October 5. Fluxys Belgium intends to use the net proceeds of the bond issuance for general corporate purposes of the Fluxys Belgium Group, including the repayment of the Issuer’s retail bond maturing in May 2018. Belfius and Credit Agricole were mandated as coordinating banks and joint bookrunners and Commerzbank, Mizuho and NatWest Markets as joint bookrunners.
William Powell