Non Flash Content - Children running through a field of corn

Bord Gáis issues €500m 5 year bond


Bord Gáis today successfully raised a €500m bond with a 5 year maturity at a coupon of 3.625%. The proceeds from the bond issue will be used to refinance some of Bord Gáis’ existing debt. The company is now fully funded to 2017.

Michael G. O’Sullivan, Bord Gáis' Chief Financial Officer, said “Today’s bond issue was an overwhelming success and is further evidence that investor confidence in Ireland and Irish companies has significantly improved. The transaction received total orders of more than €6.5bn in just one hour. Such strong appetite for today’s bond, coming so soon after fundraising rounds from the NTMA, ESB and Bank of Ireland, demonstrates the real momentum behind Irish companies on international markets. This deal, with over 400 institutional investors from a broad range of European countries, is a clear vote of confidence in the financial strength and strategic direction of Bord Gáis”.

The company’s last bond issue was in 2009 for €550m and despite the turbulent economic environment in the interim, the company has achieved the same credit spread and a lower coupon with the new bond. The €550m bond is due to mature in 2014 and a Tender Offer to repurchase this bond has been announced and will expire next Tuesday 27 November 2012.

The following international banks acted as lead managers on the transaction: Barclays, BNP Paribas, Danske Bank, HSBC, RBC Capital Markets and RBS.

For further information, please contact:

Larry Donald 0872581787
Christine Heffernan 0870505555