Enel SpA exercised the option to redeem €1 billion of its non-convertible, subordinated hybrid bonds maturing Jan. 15, 2075.
The bonds, with 5% coupon rate, were issued and listed on the Irish Stock Exchange on Jan. 15, 2014.
Enel will pay back approximately €410 million to the noteholders, along with accrued interest, on the first call date of Jan. 15, 2020. The figure represents the outstanding amount resulting from the company's liability management transactions in the period between 2018 and 2019.
The group added Dec. 5 that the transaction is part of its strategy to optimize its liability structure by cutting the cost of debt.
In October, Enel subsidiary Enel Finance International NV launched a €2.5 billion multitranche sustainable bond offering on the European market, following a successful placement in the U.S.