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30 October 2019 - The company

KPN issues € 500m hybrid bond

NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA OR IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT

Today, Koninklijke KPN N.V. (“KPN”) has successfully issued a € 500 million perpetual non-call 5.25 year subordinated bond with a 2.00% coupon until the first reset date on 8 February 2025. The hybrid bond will be listed on Euronext Dublin’s Global Exchange Market.

Proceeds will be used for general corporate purposes, including refinancing of debt. This transaction will enable KPN to materially lower the cost of its outstanding hybrid capital.

The new hybrid bond will be treated for 50% as equity and 50% as debt by the credit rating agencies and will be accounted for as equity under IFRS. The hybrid bond is expected to be rated Ba2 by Moody’s, BB+ by S&P and BB+ by Fitch.

Barclays and Goldman Sachs acted as Structuring Advisors and Joint Global Coordinators and together with BNP Paribas and NatWest Markets as Joint Lead Managers for the transaction.


Disclaimer
These materials are not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any (other) jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

The bonds are not and will not be registered under the US Securities Act of 1933, as amended (the US Securities Act) and will also not be registered with any authority competent with respect to securities in any state or other jurisdiction of the United States of America. The bonds may not be offered or sold in the United States of America without either registration of the securities or an exemption from registration under the US Securities Act being applicable.