Total has issued perpetual subordinated bonds worth €3bn.
The proceeds from the bonds will be used to finance its development strategy, mainly acquisitions, in renewables, with €1.7bn to be used for the acquisition of a 20% interest in India-based Adani Green Energy Limited.
The capital raised from the issuance will allow Total to finance its development in renewables at a reduced capital cost.
The hybrid bond issue comprises €1.5bn at 1.625% coupon for the tranche with a seven year first call date and €1.5bn at 2.125% coupon for the tranche with a 12 year first call date.
With a weighted average coupon of 1.875%, the issuance was “very well received” by investors, Total said.
Total chief financial officer Jean-Pierre Sbraire said: “These hybrid bonds provide a cost of capital comparable to that of pure players in renewables and is therefore suited to finance acquisitions in this business.
“These bonds will finance in a very competitive way our development in renewables, which is at the heart of our strategy to transform Total into a broad energy company.”
