Note 36 Events after balance sheet date

Issue and repurchase of perpetual bonds

On 29 January 2018, Alliander announced the intention to issue a new subordinated perpetual bond loan. At the same time, an offer was made for all the outstanding bonds of the €500 million perpetual bond loan issued in 2013, conditional upon the successful issue of the new loan. Subsequently, on 30 January, €500 million in new subordinated perpetual bonds was successfully issued at a coupon rate of 1.625% and an issue price of 99.144%. By the offer closing date of 5 February, applications were found to have been received from investors for repurchase by Alliander of bonds totalling approximately €413 million from the 2013 issue. The remaining amount of approximately €87 million in bonds that are still outstanding will be redeemed under the terms of the loan on 27 November 2018 at 100% of the nominal value by exercising the first right of redemption. The carrying amount of the hybrid instrument as at 31 December 2017 was €496 million. As a result of this transaction, equity has increased by €71 million.

In line with Alliander’s financial policy, the new bond loan will be treated as 50% equity in the financial ratios. For rating purposes, the outstanding bonds of the 2013 loan will be counted 100% as debt for rating purposes with effect from 30 January. Under IFRS, the existing recognition as equity will be continued.