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What Enel (BIT:ENEL)’s €2 Billion Perpetual Hybrid Notes Issuance Means For Shareholders

Simply Wall St · 2d ago
  • Enel SpA recently completed two Fixed to Floating Rate Subordinated Perpetual Hybrid Note issuances, raising a combined €2.00 billion through callable, variable-rate, subordinated instruments priced just below par.
  • This move adds hybrid capital that can support Enel's balance sheet flexibility while offering long-dated funding aligned with its integrated electricity and renewable energy operations.
  • We will now examine how Enel’s €2.00 billion perpetual hybrid funding could influence its investment narrative around balance sheet strength and growth.

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Enel Investment Narrative Recap

To own Enel, you need to believe in a large, integrated utility that leans on regulated networks and renewables while managing political, regulatory and FX risks. The new €2.00 billion perpetual hybrid notes modestly support the balance sheet and funding flexibility, but do not materially change the near term catalyst around execution in renewables and grid digitalization, or the key risk of concentrated CapEx in Europe’s regulated markets.

The recent decision to start a share repurchase program of up to €3,500 million, alongside dividend growth, is the most relevant prior announcement here, as it sits on the other side of the capital structure from this hybrid issuance. Together, these moves highlight how Enel is balancing investment in networks and renewables with cash returns to shareholders, which will be closely watched against the backdrop of regulatory risk in Italy and Spain.

Yet investors should also be aware of how concentrated European CapEx could amplify the impact of any adverse regulatory shift on...

Read the full narrative on Enel (it's free!)

Enel's narrative projects €88.5 billion revenue and €7.1 billion earnings by 2028. This requires 4.4% yearly revenue growth and about €1.1 billion earnings increase from €6.0 billion today.

Uncover how Enel's forecasts yield a €9.02 fair value, a 3% downside to its current price.

Exploring Other Perspectives

BIT:ENEL 1-Year Stock Price Chart
BIT:ENEL 1-Year Stock Price Chart

Twelve fair value estimates from the Simply Wall St Community span roughly €6.63 to €9.63, underlining how differently your peers view Enel’s worth. Set against Enel’s heavy European CapEx concentration, these varied opinions highlight why you may want to compare several risk and return assumptions before forming a view.

Explore 12 other fair value estimates on Enel - why the stock might be worth 28% less than the current price!

Build Your Own Enel Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Enel research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
  • Our free Enel research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Enel's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.