UPDATE:Eneco Roadshowing Euro Benchmark Hybrid Corporate Bond Issue

21st Jun 2010 11:18

(Adds background) By Michael Wilson of DOW JONES NEWSWIRES LONDON (Dow Jones)--Dutch utility company, Eneco Holding NV, has hired Deutsche Bank AG, ING Bank NV and the Royal Bank of Scotland PLC as joint bookrunners for a series of investor meetings starting Wednesday June 23, a bank leading the deal said Monday. The company then plans to issue a euro-denominated, benchmark, hybrid bond, subject to market conditions. The deal is only the second corporate hybrid touted this year. The last was Dutch state-owned TenneT Holding BV's hybrid bond early February, itself the first in more than 18 months. Despite the lull, investors snapped up the TenneT deal, with demand at around EUR3 billion in the EUR500 million transaction. The small market--worth under EUR20 billion--was devastated by the recent financial turmoil, as the securities lie toward the riskier end of the corporate debt spectrum. Hybrids sit below senior bonds in a company's capital structure, with a lesser claim on its assets in liquidation. Borrowers like them because they are tax-deductible and can help support a company's credit rating. Their equity-like characteristics, which allow an issuer to gain "equity credit" from ratings agencies, bolster capital holdings without diluting a company's existing shareholders. -By Michael Wilson, Dow Jones Newswires; 44 20 7842 9349; [email protected] (END) Dow Jones Newswires June 21, 2010 06:18 ET (10:18 GMT)