Clifford Chance LLP

08/05/2020 | News release | Distributed by Public on 08/05/2020 05:41

Clifford Chance Amsterdam advises the Province of Noord Brabant on the first part of a convertible hybrid shareholder loan to Enexis Holding N.V.

Clifford Chance Amsterdam advises the Province of Noord Brabant on the first part of a convertible hybrid shareholder loan to Enexis Holding N.V.

Clifford Chance Amsterdam advised the Province of Noord Brabant on the first tranche of a EUR 500 million convertible hybrid shareholder loan to Enexis Holding N.V. ('Enexis'). The Province of Noord Brabant headed the Lender group which consisted of 5 provincial and 23 municipal shareholders.

The fixed rate convertible shareholder loan represents major financial support from the shareholders to help Enexis implement its share of the energy transition in The Netherlands. The first tranche of the loan amounted to more than EUR 421 million with an interest rate of 2.15%. The second tranche is expected to be completed in late November 2020.

The loan is deeply subordinated and has a maturity of up to sixty years with an interest rate reset in 2030. Under specific circumstances, the loan can be converted entirely into equity. Given its hybrid nature, the loan partially receives an equity treatment from S&P Global Ratings.

In its press release relating to the loan, Enexis noted: 'The collaboration between the shareholders and Enexis Holding and the raising of this shareholders' loan, is part of the latter solution and an important step towards enabling the energy transition.'

The Clifford Chance Amsterdam team was led by Tineke Kothe and Titus de Vries and furthermore consisted of Hugo van der Molen, Han Teerink and Boudewijn Vermeer. Tax aspects were covered by Willem Specken, Nolan Groenland and Robin Houtveen.