VNG boosts financial power with Schuldschein promissory note loan
High demand led to oversubscription, which VNG used as an opportunity to increase the original issue volume of EUR 100 million. The loan was collected in several tranches with terms of five and seven years. The issue was supported by Helaba (state bank of Hesse and Thuringia) and SEB AB Frankfurt branch as arrangers. In choosing the Schuldschein issue, the company has opted for a tried and tested, long-term financing instrument. The associated market has been characterised by increasing momentum, internationalism and receptiveness through a wide investor base in recent years.
Bodo Rodestock, member of the VNG AG Executive Board is extremely pleased with the successful promissory note issue. “We see VNG as partnering and shaping the energy transition. And at the same time as ‘caretaker’ for the provision of a resilient gas infrastructure in eastern Germany. Successful placement of the new promissory note with clear oversubscription is a sign of much confidence and confirmation that the capital market believes in our business model and our corporate transformation towards renewable gases.”
The new capital will safeguard investment already made, particularly in infrastructure and biogas and thus drive forward implementation of the strategy. “We have set out our way ahead in the ‘VNG 2030+’ strategy, which is helping us evolve into a green, digital group of companies with core expertise in the gas business – while embracing our roots in eastern Germany. As we do so, we will always have a close eye on structural changes that are on their way, providing public utilities and contributing to the common good in our region,” confirms Rodestock.
ABOUT VNG AG
VNG is a group of over 20 companies active in the European energy industry with a broad, future-oriented portfolio of products and services in gas and infrastructure, and more than 60 years of experience in the energy market. Headquartered in Leipzig, the Group has a workforce of some 1,300 and generated billed revenue of approximately EUR 9.8 billion in the 2020 financial year. VNG concentrates on four links in the gas value chain: Trading & Sales, Transport, Storage and Biogas. Building on its core expertise in the gas business, the Group’s “VNG 2030+” strategy places a grow-ing focus on new business fields. These include green gases and digital infrastructure. More at www.vng.de