KPN Issues €500M Hybrid Bond and Repurchases Existing Tranche
The Dutch telecommunications operator has undertaken active management of its hybrid capital by combining a new subordinated issuance with a buyback offer targeting an existing tranche.
€500M Perpetual Hybrid Bond Classified 50% as Equity
On September 1, 2026, Koninklijke KPN N.V. announced its intention to issue a perpetual subordinated non-callable hybrid bond ("Hybrid Bond") with a principal amount of €500 million, with a non-call period of 5.25 years.
The proceeds from this issuance will be used for general corporate purposes and refinancing of existing debt. The instrument is expected to be treated 50% as equity and 50% as debt by S&P and Fitch, and will be recorded as equity under IFRS standards.
Buyback Offer on Hybrid Tranche at First Reset Date on December 21, 2027
Concurrently, KPN launched a buyback offer ("Offer") targeting all of its €500 million perpetual hybrid securities with a first reset date of December 21, 2027 (ISIN: XS2486270858).
The terms are detailed in the Tender Offer Memorandum dated September 1, 2026, available from the Tender Agent. According to the operator, the objective of these transactions is to proactively manage its hybrid capital and optimize interest costs. The offer will expire on September 8, 2026 at 5:00 p.m. CEST, unless extended.
Repurchase Conditional on New Issuance
KPN's obligation to accept securities tendered in the offer is subject to the satisfaction or waiver of certain conditions, including the New Financing Condition as described in the Tender Offer Memorandum.
Barclays and ING have been appointed as Joint Structuring Advisors. Barclays, Deutsche Bank, ING, Intesa Sanpaolo, Rabobank, Santander, and SEB are acting as Joint Lead Managers for the new issuance. Barclays and ING are serving as Dealer Managers for the offer, and Kroll Issuer Services Limited as Tender Agent.
