Bouygues is a large, diversified French group with substantial access to senior debt markets, but its 2022 balance sheet shows a meaningful increase in leverage after major investment/acquisition activity.

Key points:

- Net debt rose sharply from €0.9bn to €7.4bn in 2022.
- Long-term borrowings roughly doubled, from €5.8bn to €11.6bn.
- Equity remains sizeable at €13.9bn, so the group is not undercapitalized, but the debt increase is material.
- Operating profitability is positive and recurring operating profit improved to €2.0bn, but free cash flow was pressured by heavy investing outflows.
- Hybrid bonds could be useful because rating agencies often give partial equity credit, helping preserve credit metrics while avoiding immediate equity dilution.
- However, hybrid debt is more expensive than senior debt, especially in 2022 as euro rates and credit spreads rose sharply. The sub-senior/non-financial IG spread proxy increased materially, making hybrids relatively costly.
- Given Bouygues’ investment-grade profile, diversified cash generation, and continued access to conventional debt, hybrids should supplement—not dominate—the capital structure.

Therefore, a moderate reliance is appropriate: enough to support leverage and rating flexibility after the step-up in net debt, but not so much that the group overpays for subordinated capital.

<answer>25%</answer>