Rexam’s €750m 60-year 6.75% hybrid was priced at euro-mid swaps plus 190 basis points. It was accompanied by a 9.9% equity placing to raise £286m that, combined, supported its BBB and Baa3 corporate rating. The group was keen to find a financial solution that worked for its shareholders by minimising dilution; was attractive from a debt holder perspective – which meant maintaining Rexam’s investment-grade ratings – and was also cost-effective when compared with other financing options. It was also vital to get comfort on the tax treatment. The key to the hybrid’s success was getting the structuring right. The process is very different from issuing a senior bond, where the terms and conditions follow a familiar path.