OMV, the main shareholder of the most important Romanian oil and gas company, OMV Petrom, announced the launch of a hybrid bond issue, worth up to 1.25 billion euro, in two tranches, in order to finance the acquisition of the additional investment 39% in Borealis AG, but also for “general corporate purposes”, according to Profit.ro.

The hybrid bonds from the first tranche, worth 750 million euro, will not have a maturity date and will bear a fixed interest rate of 2.50% per year until September 1, 2026.

The hybrid bonds in the second tranche, worth 500 million euro, will also not have a maturity date and will bear a fixed interest rate of 2.875% per year until September 1, 2029.

From those dates, the bonds will bear an annual interest rate at a reset interest rate that is determined based on the relevant 5-year swap rate, plus a specified margin.