Veolia Environnement Announces the Success of the Issuance of Subordinated Perpetual Hybrid Debt in Euros and Pound Sterling

Thu Jan 10, 2013 3:00am EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130110:nBw105404a

PARIS--(Business Wire)--
Regulatory News : 

After meeting approximately 150 investors, primarily in continental Europe and
the United Kingdom, Veolia Environnement (Paris:VIE) launched the issuance of
deeply subordinated perpetual hybrid debt in euros and pound sterling, callable
beginning April 2018. Given the strong final demand, which exceeded €9 billion
for the two tranches and an order book of more than 600 orders, Veolia
Environnement issued €1 billion at a 4.5% yield for the tranche in euros and
£400 million at a 4.875% yield for the tranche in sterling, fixing historically
low interest rates. This demand reflects investor confidence in the financial
strength of Veolia Environnement.
This operation allows the Company to reinforce its financial structure in
conjunction with its transformation while strengthening credit ratios. Ratings
agencies consider that half of the issued amount will result in debt reduction1.
In addition this issuance diversifies the currencies of the Company`s equity and
diversifies the Company`s investor base.
This issuance will be treated as equity under the consolidated IFRS accounts. As
a result, the debt reduction objectives communicated during the last Investor
Day on December 6, 2011 will therefore be adjusted to take into account the
impact of this issuance. 

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With more than 330,000 employees the
company has operations all around the world and provides tailored solutions to
meet the needs of municipal and industrial customers in four complementary
segments: water management, waste management, energy management and passenger
transportation. Veolia Environnement recorded revenue of €29.6 billion* in 2011.
www.veolia.com
* Excluding VeoliaTransdev revenues currently under divestment

Important disclaimer
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris.
This press release contains "forward-looking statements" within the meaning of
the provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These statements are based on management`s current expectations or beliefs and
are subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. These factors and uncertainties in particular include risks related
to customary provisions of divesture transactions and those described in the
documents Veolia Environnement has filed with the U.S. Securities and Exchange
Commission. Veolia Environnement does not undertake, nor does it have, any
obligation to provide updates or to revise any forward-looking statements.
Investors and security holders may obtain a free copy of documents filed by
Veolia Environnement with the U.S. Securities and Exchange Commission from
Veolia Environnement. 

Press release also available on our web site: http://www.finance.veolia.com

1 In its press release issued January 4, 2013 S&P assigned a BBB- rating to the
hybrid and 50% equity content until April 2018. In its press release issued
January 7, 2013, Moody`s assigned a Baa3 rating and 50% equity content.

Veolia Environnement
Analyst and institutional investor contact:
Ronald Wasylec
+33 1 71 75 12 23
or
US Investors contact
Terri Anne Powers
Tel +1 312-552-2890

Copyright Business Wire 2013
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