March 27, 2017 / 4:40 PM / 6 months ago

E.ON plans 3 bln euro bond issue after cash call

FRANKFURT, March 27 (Reuters) - German utility E.ON plans to issue bonds worth up to 3 billion euros ($3.26 billion) this year, returning to the market after an eight-year absence, its chief executive told German daily Frankfurter Allgemeine Zeitung.

The cash-strapped company has until the middle of the year to pay nearly 10 billion euros into a fund set up to cover the German nuclear sector’s long-term liabilities. The company raised 1.35 billion euros in equity capital this month.

E.ON’s recent credit rating downgrade “does not translate into a material increase in borrowing costs”, CEO Johannes Teyssen told the paper in an excerpt of an interview made available to Reuters on Monday.

The company reported a record 2016 net loss of 16 billion euros this month, hurt by writedowns, but Teyssen said the worst is over.[

“Shareholders don’t have to fear things like this any more. I see rather positive trends ahead of us,” He was quoted as saying. ($1 = 0.9198 euros) (Reporting by Ludwig Burger; Editing by David Goodman)

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