RWE has successfully returned to the hybrid bond market, issuing €1 billion in two tranches to support its ongoing investment programme. This marks the company’s first hybrid bond issuance since 2015.

The bond was split into two €500 million tranches, both with 30-year maturities. The first tranche has a first call date after 5.25 years and offers a 4.125% annual coupon, with a yield-to-maturity of 4.2% based on an issue price of 99.653%. The second tranche has a first call after 8 years, a coupon of 4.625% per year, and a yield-to-maturity of 4.7% based on a price of 99.509%.

Investor demand was exceptionally strong, with the order book reaching €10.5 billion—more than 10 times the issuance volume.

This transaction enhances RWE’s financial flexibility and strengthens its balance sheet. Credit rating agencies Moody’s and Fitch have classified the bond as 50% equity, assigning ratings of Baa3 and BBB- respectively.

Proceeds from the issuance will be used to fund projects aligned with RWE’s Green Financing Framework, for its long-term strategy for sustainable investment.