French Energy Co. ENGIE's Proposed Green Hybrid Instrument Rated 'BBB-'; Equity Content Intermediate

ENGIE SA (ENGIE) plans to issue a junior subordinated hybrid security of at least €500 million to partially or fully replace three of its existing hybrids (fist call dates in 2021, 2023, and 2024). At the same time, ENGIE is launching a tender offer on the three abovementioned hybrids so that, together with the new issue, the equity content of its hybrid stocks remains stable. We believe the proposed transaction does not impair our view of the hybrid layer within ENGIE's capital structure and understand that ENGIE is committed to maintaining €3.75 billion of hybrid capital on its balance sheet. We are assigning a 'BBB-' issue rating to the proposed security to reflect its subordination and optional deferability. We also

...- ENGIE SA (ENGIE) plans to issue a junior subordinated hybrid security of at least 500 million to partially or fully replace three of its existing hybrids (fist call dates in 2021, 2023, and 2024). - At the same time, ENGIE is launching a tender offer on the three abovementioned hybrids so that, together with the new issue, the equity content of its hybrid stocks remains stable. - We believe the proposed transaction does not impair our view of the hybrid layer within ENGIE's capital structure and understand that ENGIE is committed to maintaining 3.75 billion of hybrid capital on its balance sheet. - We are assigning a '###-' issue rating to 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) Nov. 19, 2020--S&P Global Ratings today assigned its '###-' long-term issue rating to the proposed undated, optionally deferrable, and subordinated hybrid capital securities...

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