RWE strengthens its capital structure

Essen, (PresseBox) - .
- Subordinated bond of 750 million GBP
- RWE takes advantage of favourable market conditions for hybrid bonds

RWE today launched a hybrid bond with a volume of 750 million GBP. The issue met with lively interest from institutional investors and was several times oversubscribed. With this step, the Group is implementing a further part of the package of measures announced in August 2011 that was designed, amongst other things, to improve its capital structure. This is RWE's third hybrid bond, following the successful launches of hybrids denominated in euros in 2010 and in Swiss francs in 2011.

The bond has theoretically an unlimited duration, but RWE does have the right to repayment after a period of 7 years. It is aimed primarily at institutional investors in the UK that are seeking to invest in companies with a strong credit rating. Hybrid bonds are a mix of equity and debt and offer a higher coupon than normal bonds. The RWE hybrid offers a coupon of 7.0% with an issue price of 99.3%. The joint lead managers were JP Morgan, Barclays Capital as well as Citi Group, Morgan Stanley, Royal Bank of Canada and Royal Bank of Scotland.

"We are very pleased with the strong demand for our hybrid bond which demonstrates the confidence that RWE enjoys among investors. It is the next logical step towards implementing our package of measures," says RWE's Chief Financial Officer, Dr. Rolf Pohlig.

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