French utility company EDF said that it would convert some of its bonds into shares in an effort to strengthen its balance sheet. It said that the French state requested to convert 87,831,655 EDF ‘OCEANES’ bonds (convertible bonds) into shares, thereby issuing 113,215,003 new EDF shares. This would lead to a decrease in EDF’s debt by ~€1bn. EDF further noted that besides strengthening its balance sheet, the capital increase may also allow it to refinance of a part of its hybrid subordinated debt.
EDF’s bonds were trading steady with its 2% Perp at 58.92, yielding 4.74%.
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