BRUSSELS/BERLIN – Elia System Operator SA/NV (‘Elia’) announces the closing of the Transactions with IFM Global Infrastructure Fund (‘IFM’) and the German state-owned bank Kreditanstalt fu¨r
Wiederaufbau (‘KfW’) regarding a 20% stake in Eurogrid International (‘Eurogrid’). With the close of these transactions, KfW, on behalf of the German Federal Government, replaces IFM as shareholder in Eurogrid, the holding company of the German transmission system operator 50Hertz Transmission GmbH (‘50Hertz’).
The change in share ownership followed a notification received in May 2018 from IFM, an Australian Investment management company, of an agreement with a third-party for the acquisition of IFM's remaining 20% stake in Eurogrid. In April 2018, Elia had already acquired a first 20% share package from IFM. After obtaining an 80% stake in Eurogrid, Elia achieved its objective to fully control 50Hertz and decided to exercise its pre-emption right and to partner KfW by selling the remaining 20% stake at the same price.
Following the successful closing of the transaction, Elia plans to refinance the bridge loan that temporarily financed the acquisition on April 26, 2018 of 20% in Eurogrid. Elia confirms its intention to finance this acquisition by issuing long-term debt instruments of which €700M will be hybrid bonds and €300M unsubordinated senior bonds.
KfW is one of the world’s leading promotional banks. With its decades of experience, KfW is committed to improving economic, social and ecological living conditions across the globe on behalf of the Federal Republic of Germany and the federal states. To do this, it provided funds totalling EUR 76.5 billion in 2017 alone; and of this, 43 % went into measures to protect the environment and combat climate change.
KfW does not have any branches and does not hold customer deposits. It refinances its promotional business almost entirely through the international capital markets. In 2017, KfW raised some EUR 78 billion for this purpose. In Germany, the KfW Group is represented in Frankfurt, Berlin, Bonn and Cologne. Ist network includes 80 offices and representations around the world.
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