VERBUND’s balance sheet and cash-flow profile suggest only a limited need to rely on hybrid bonds.

Key points:

- **Leverage is moderate.** At year-end 2022, total financial liabilities were about €3.95bn, while cash was €0.41bn, giving net financial debt of roughly €3.54bn. Against 2022 EBITDA of €3.16bn, net debt/EBITDA is only about **1.1x**, which is conservative.
- **Equity base is strong.** Equity increased to €8.32bn, with total assets of €19.16bn, implying an equity ratio of about **43%**. This gives the company meaningful balance-sheet flexibility without needing large equity-credit instruments.
- **Profitability and cash generation improved sharply.** Revenue more than doubled, EBITDA roughly doubled, and operating cash flow rose to about €2.02bn in 2022. This supports conventional debt capacity.
- **However, capital intensity is high.** VERBUND has large PPE and ongoing investment needs, with investing cash outflows of about €1.59bn in 2022. Hybrid bonds could be useful as a financing tool to preserve ratings and support growth capex.
- **Market conditions were less favorable in 2022.** Swap rates rose sharply, and credit spreads widened. Hybrid/subordinated debt would be materially more expensive than senior funding, so heavy reliance would be unattractive.
- **Business quality is strong but not risk-free.** As a utility with regulated/grid and hydro-heavy generation exposure, VERBUND has stable characteristics, but earnings and OCI were affected by energy derivatives and market volatility.

Overall, VERBUND does not need a large hybrid layer because leverage is low and equity is strong. Still, a modest hybrid allocation can be justified to maintain financial flexibility and rating support during a period of heavy investment and volatile energy markets. Among the given choices, **25%** is the most appropriate reliance level.

<answer>25%</answer>