Corrected: France’s Total issues €3bn bonds to fund renewables investments

SINGAPORE (ICIS)–French energy firm Total has issued €3bn worth of perpetual subordinated bonds to fund its acquisitions in the renewables sector, including the 20% interest in India’s Adani Green Energy Ltd (AGEL).

Half of the bond issuance fetched a coupon of 1.625% with a seven-year first call date, while the other €1.5bn fetched a 2.125% coupon with a 12-year first call date, Total said in a statement on Tuesday.

“The proceeds from the bonds will be used to finance its development strategy, mainly acquisitions, in renewables, in particular €1.7bn for the acquisition of a 20% interest in Adani Green Energy Limited,” it said.

The bonds with a weighted average coupon of 1.875% ”will allow the Group to finance its development in renewables at a reduced capital cost”, Total said.

The French energy firm announced on Monday that it is investing $2.5bn to acquire the minority stake in AGEL and half of the Indian solar developer’s operating assets.

“These hybrid bonds provide a cost of capital comparable to that of pure players in renewables and is therefore suited to finance acquisitions in this business,” Total chief financial officer Jean-Pierre Sbraire said.

“These bonds will finance in a very competitive way our development in renewables, which is at the heart of our strategy to transform Total into a broad energy company,” Sbraire added.