France-Based Engie S.A.'s Proposed Green Hybrid Instrument Rated 'BBB-'; Equity Content Intermediate

Engie S.A. (Engie) plans to issue a dual-tranche junior subordinated hybrid security of €1.84 billion. This will partially or fully replace two of its existing hybrids (first call dates in November 2024, and April 2025) and will replenish its hybrid stock by €337.8 million (corresponding to the amount of a hybrid note effectively redeemed on June 3, 2024). Engie is simultaneously launching a tender offer on the two abovementioned hybrids (non-call; NC2024 and NC2025) so that, together with the new issue, the equity content of its hybrid stocks will remain broadly stable. The proposed transaction does not change our view of Engie's issuer intent toward hybrids. This is because Engie is fully committed to maintaining €3.4 billion of hybrid capital

...- Engie S.A. (Engie) plans to issue a dual-tranche junior subordinated hybrid security of 1.84 billion. This will partially or fully replace two of its existing hybrids (first call dates in November 2024, and April 2025) and will replenish its hybrid stock by 337.8 million (corresponding to the amount of a hybrid note effectively redeemed on June 3, 2024). - Engie is simultaneously launching a tender offer on the two abovementioned hybrids (non-call; NC2024 and NC2025) so that, together with the new issue, the equity content of its hybrid stocks will remain broadly stable. - The proposed transaction does not change our view of Engie's issuer intent toward hybrids. This is because Engie is fully committed to maintaining 3.4 billion of hybrid capital on its balance sheet. - We assigned a '###-' issue rating on the proposed security to reflect its subordination and optional deferability. We also assess the proposed security as having intermediate equity content. PARIS (S&P Global Ratings)...

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