TAURON Group placed 15-year uncollateralized registered bonds to the value of 168 million euro on the German market.
The issue of registered bonds, so-called NSV (Namensschuldverschreibung) was carried out by TAURON Sweden Energy, a 100 percent subsidiary of TAURON Polska Energia and underwritten by TAURON.
The NSV issue was taken mostly by German investors including insurance funds, pension funds and German banks. The money collected from the bond placement will be lent to TAURON which will use it for the Group’s general purposes, in particular to finance the investment program.
– Large interest in the issue among investors representing relatively conservative business segment in Germany confirms that TAURON’s achievements and position, and in particular its financial credibility, are highly evaluated by European financial market. This was the first transaction of its kind executed by a CEE energy utility and its success opens to TAURON a new, attractive source of finance for the future – said Dariusz Lubera, CEO, president of the Management Board of TAURON Polska Energia.
– It is worth underlining that the terms and conditions of NSV issue have been tailored to meet TAURON’s needs, and the transaction itself is based on clear and transparent legal documentation. The NSV issue, in addition to the favorable 15-year maturity, is also very attractive in terms of the cost of financing. The issue is a milestone in the development of relations between TAURON and European institutions – said Krzysztof Zawadzki, CFO, vice-president of the Management Board of TAURON Polska Energia.
NSV placement was organized in cooperation with J.P. Morgan, who acted as the arranger.
The issue followed preparation of standard NSV documentation and a series of meetings between TAURON representatives and financial investors operating in the German market. The NSV issue was settled on 3 December.
