EON cuts 1 bn euros from debt through bond buyback
German energy giant EON on Thursday said it will cut its debt by one billion euros ($1.4 billion) through a bond buyback financed by recent asset sales.
EON had bid to buy an even bigger 1.5 billion euros from three players who own a total of 5.0 billion euros of the utility's debt between them, according to a statement.
EON, like it's European competitors, is struggling to cut debt as its fossil fuel operations and new rules are forcing it to invest in renewable energy sources.
EON, which is restructuring its business, financed the operation through recent asset sales, the statement said.
The company said in March it has raised some 20 billion euros by selling its non-core assets in recent years, above its original target of 15 billion euros.
The company hopes the bond purchase -- its third since 2009 -- will help reduce its debt pile, which stood at a net figure of 32 billion euros at the end of last year.
© 2014 AFP