Based on the 2022‑2023 financial statements, ENGIE carries a very large amount of conventional debt (long‑term borrowings of €28.1 bn plus current borrowings of €12.5 bn), while the deeply‑subordinated perpetual notes that qualify as hybrid capital amount to only €3.4 bn – roughly 4 % of total debt plus equity. This limited hybrid component provides only a modest buffer for rating agencies and does not materially improve the flexibility of the capital structure.

The company’s net finance costs rose sharply in 2022 (net financial loss of €3.0 bn), and the interest‑rate environment shifted dramatically higher (the 5‑year swap average moved from –0.26 % in 2021 to +1.73 % in 2022). In such a rising‑rate environment, hybrid bonds can be used to lock in equity‑like funding that counts toward regulatory capital, thereby partially offsetting the increased cost of straight debt and supporting credit metrics.

Given the high leverage, the need for cost‑effective financing, and the modest current share of hybrid instruments, a moderate increase in the use of hybrid bonds is advisable. An allocation in the range of about one‑quarter of total capital would provide a meaningful equity cushion without over‑leveraging the structure, aligning with typical corporate finance best practices for a company of ENGIE’s size and sector.

<answer>25%</answer>