Fluxys Belgium: successful long-term bond issuance of €350 million

Fluxys Belgium has successfully issued two bonds with a total nominal value of €350 million at historically low credit spreads and for long-term maturities. Total market appetite reached €880 million, which reconfirms the confidence of European institutional investors in Fluxys Belgium’s credit quality and the key role of the Belgian natural gas grid as crossroads for Northwestern Europe.

Belgium captured the post-summer strong investor interest during a successful roadshow in Brussels, Paris, London, Frankfurt and Munich, where over 40 investors were met. The bond issuance is split into two tranches:

• A €300 million 10-year tranche priced at a coupon of 1.75% (87bps over midswap) and maturing in October 2027.
• A €50 million 15-year tranche priced at a coupon of 2.375% (105bps over midswap) and maturing in October 2032.

The bonds are settled through the securities settlement system of the National Bank of Belgium and will be listed on Euronext Brussels as from 5 October 2017. Fluxys Belgium intends to use the net proceeds of the bond issuance for general corporate purposes of the Fluxys Belgium Group, including the repayment of the Issuer’s retail bond maturing in May 2018.

Belfius and Credit Agricole were mandated as coordinating banks and joint bookrunners and Commerzbank, Mizuho and NatWest Markets as joint bookrunners.