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

ENGIE SA plans to issue a junior subordinated hybrid security of benchmark size (€500 million or more) to replace partially or fully three of its existing hybrids (first call dates in 2021, 2023, and 2024). At the same time, ENGIE is launching a tender offer on two of these hybrids (NC2023 and NC2024). 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, while retaining the flexibility to marginally reduce it (up to 10% or €375 million). We therefore assigned our 'BBB-' issue rating to ENGIE's proposed green hybrid bond to reflect its subordination and

...June 23, 2021 - ENGIE SA plans to issue a junior subordinated hybrid security of benchmark size (500 million or more) to replace partially or fully three of its existing hybrids (first call dates in 2021, 2023, and 2024). - At the same time, ENGIE is launching a tender offer on two of these hybrids (NC2023 and NC2024). - 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, while retaining the flexibility to marginally reduce it (up to 10% or 375 million). - We therefore assigned our '###-' issue rating to ENGIE's proposed green hybrid bond to reflect its subordination and optional deferability. We also assess the proposed security as having intermediate equity content. PARIS (S&P Global Ratings) June 23, 2021--S&P Global Ratings today assigned its '###-' long-term issue rating to the undated, optionally deferrable, and subordinated...

Ratings Action