KPN has successfully concluded its EUR 4 billion equity equivalent capital increase. The EUR 3 billion rights issue was settled on 17 May, on the back of the EUR 2 billion issue of hybrid capital instruments in March, recognised as 50 percent equity by the rating agencies. CEO Eelco Blok said the company now has a "healthy platform" to execute its strategy. Blok said the money will allow KPN to maintain its leading market positions in The Netherlands and supports the next phase of its Challenger strategy in Germany and Belgium. The CEO said the company was already reporting clear and sustainable benefits from its investments in the Dutch Consumer Residential business, and that it will continue that positive momentum. KPN said it was confident investments in its mobile operations in The Netherlands, Germany and Belgium will also lead to improving operational performance. Part of the proceeds of the hybrid bonds were used to repay drawings under the credit facility and to finance a bond redemption in March. The remaining proceeds of the capital raise will be used to strengthen KPN's capital structure and to continue to invest in KPN's operations.
