Vapo Oy issues EUR 50 million hybrid bond
Vapo Oy has issued a EUR 50 million hybrid bond. The hybrid bond’s annual coupon is 6.5 per cent. The hybrid bond does not have a maturity date, but the company has the right to redeem it for the first time on 8 November 2021, and after that on each coupon interest payment date. The hybrid bond’s issuing date will be 8 November 2016.
The funds received from the hybrid bond will be used to strengthen the company’s balance sheet and prepare for future strategic growth investments.
A hybrid bond is an instrument which is subordinated to the company’s other debt obligations and which is treated as equity in the company’s consolidated financial statements prepared in accordance with the IFRS. The hybrid bond does not confer to its holders the rights of a shareholder and does not dilute the holdings of the current shareholders.
“Vapo is a strong expert in the clean energy value chain, at the same time building new business outside the energy sector based on its peat expertise. The need for additional capital is considered to be temporary, so issuing the hybrid bond supports the company well in its strategic change. We are very pleased with the broad interest shown by institutional and private investors. Owing to keen demand, the hybrid bond was considerably oversubscribed, which is a clear indication of the investors’ trust in Vapo,” says Tomi Yli-Kyyny, CEO of Vapo.
Nordea Bank Finland Plc is acting as the lead manager in the transaction. Castrén & Snellman Attorneys is acting as the legal advisor to Vapo Oy.
For further information, please contact:
– Tomi Yli-Kyyny, CEO, Vapo Oy, tel. +358 20 790 5605
– Suvi Kupiainen, CFO, Vapo Oy, tel. +358 20 790 5516
– Ahti Martikainen, Director, Communications and Public Affairs, Vapo Oy, tel. +358 20 790 5608