In exchange for the bonds presented, a new €835 million bond line maturing in 2021 was issued, based on a rate equivalent to the mid swap rate +130 basis points and paying 4.25%.
The exchange offer has completely fulfilled the goal of lengthening the average duration of Veolia's funding, by reducing the amount of bond repayments due in 2012 by 33%, and in 2013 by 44%, and setting a new maturity of 2021, while taking advantage of especially favorable market conditions for long-dated issues.
The success of this operation is a reflection of investor confidence in Veolia Environnement's financial strength, with an order book reaching €1.2 billion, in less than two hours.
The next installment on Veolia Environnement bonds falls due in 2012. This operation has helped to smooth the company's debt repayment schedule and bolstered its liquidity over the next three years.