French utility Electricite de France SA (EDF.FR) will price $3 billion dollar hybrid bond with a yield of 5.375%, a bank working on the deal said Thursday.
The bond is perpetual and the company has the choice to repay it after ten years.
The dollar hybrid bond comes after the completion earlier Thrsday of a similar three-part deal.
Hybrid corporate bonds combine aspects of both debt and
equity. They strengthen a company's balance sheet and can be used to
support its credit rating. However, presented with higher risks than
more typical corporate bonds, investors are rewarded with a better
return.
HSBC, Citigroup and BNP Paribas are lead managers on the deal.
Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs and Nomura
are bookrunners.
EDF
on Tuesday sold hybrid bonds--subordinated and senior to only ordinary
shares--in sterling and euros equivalent to 4 billion euros ($5.3
billion).
EDF is rated Aa3 by Moody's Investors Service, and A+ by Standard & Poor's and Fitch Ratings.