Vattenfall Issues Hybrid Securities

On June 17, Vattenfall Treasury AB launched EUR 1 billion of Capital Securities, guaranteed by Vattenfall AB.

The notes are rated Baa2 (positive outlook) by Moody's and BBB- (stable) by S&P and are subordinated to Vattenfall's Senior Debt due to various provisions. Vattenfall’s senior debt is rated A3 (positive outlook) by Moody’s and A- (stable outlook) by S&P. The Capital Securities offering is the largest-ever pan-European corporate offering and the first to receive 75% and 60% equity credit from Moody's and S&P, respectively. “The financing fits well with our ambition to optimise our capital structure and will enhance financial flexibility”, says Matts Ekman, CFO and deputy CEO of Vattenfall AB. Vattenfall conducted a 5-day pan-European Roadshow to market this transaction to institutional Investors. The offering attracted over EUR 2 billion in interest and is the largest issue of its kind to be completed by a European corporation. Citigroup, Merrill Lynch and JPMorgan acted Joint-Book runners for the issue. Citigroup was sole Structuring Agent. For more information, please contact: Matts Ekman, CFO Vattenfall AB, telephone +46-8-7395007 Anders Lidefelt, President Vattenfall Treasury AB, telephone +46-70-5585832. Klaus Aurich, Head of Investor Relations, Vattenfall AB, telephone +46-8-7396514. From Vattenfall's Press Office, telephone: +46 8 739 50 10.