Events after balance sheet date

Issue and repurchase of perpetual bonds

On 29 January 2018, Alliander announced its intention to issue a new perpetual subordinated bond. At the same time, a tender was issued for all €500 million of perpetual bonds in the 2013 issue, subject to the successful issue of the new loan. To this end, on 30 January, €500 million of new perpetual subordinated bonds were issued at a coupon rate of 1.625% at an issue price of 99.144%. At the end of the tender period on 5 February, investors holding a total of some €413 million of bonds from the 2013 issue had registered for repurchase by Alliander. In accordance with the loan terms and conditions, the remaining €87 million of bonds outstanding will be redeemed at 100% of face value by exercising the first right of redemption on 27 November 2018. The carrying amount of the hybrid loan at 31 December 2017 was €496 million. Equity grew by €71 million as a result of this transaction.

In accordance with Alliander’s financial policy, the new bonds will be regarded as 50% equity for calculating financial ratios. The outstanding bonds from the 2013 issue will be counted as 100% debt for rating purposes with effect from 30 January. The current recognition as equity will be continued under IFRS.