I'll analyze Fortum Oyj's financial position and capital structure needs to determine the appropriate reliance on hybrid bonds.

## Key Financial Observations

**Profitability & Earnings:**
- Revenue grew from €6.4B to €8.8B (2021→2022), but profitability was severely impacted
- Profit from continuing operations: €1.01B (2022) vs €4.0B (2021)
- Massive losses from discontinued operations: -€11.3B (2022), likely related to Uniper divestment
- Overall net loss: -€10.3B (2022)
- EPS turned deeply negative: -€2.72/share

**Balance Sheet:**
- Total assets collapsed from €149.7B to €23.6B (largely due to deconsolidation of Uniper)
- Equity dropped from €13.7B to €7.7B
- Equity attributable to parent: €7.67B
- Significant non-current liabilities: €5.8B
- Current liabilities: €10.1B
- Debt levels remain substantial with financial liabilities of ~€7.8B (current + non-current)

**Leverage & Capital Structure:**
- Equity ratio: ~32.7% (7.7B/23.6B) - moderate but under pressure
- The company paid dividends of €1.01B despite losses, signaling commitment to shareholder returns
- Comparable operating profit remained solid at €1.87B

**Cash Flow:**
- Operating cash flow from continuing operations: €2.1B (healthy)
- Significant debt repayments: €5.9B
- The company is in a deleveraging phase

## Hybrid Bond Considerations

1. **Credit profile under stress**: The massive losses from Uniper and reduced equity base suggest the company needs to strengthen its capital structure. Hybrid bonds provide equity credit from rating agencies (typically 50%) without diluting shareholders.

2. **Investment-grade maintenance**: Fortum, as a major utility, likely needs to maintain investment-grade ratings. Hybrid bonds can help bridge the gap between pure debt and equity.

3. **Moderate, not extreme, reliance**: The company has decent operating cash flows from continuing operations and a still-reasonable equity base. It doesn't need to rely entirely on hybrids.

4. **Market conditions**: Rising swap rates in 2022 make hybrid issuance more expensive, but credit spreads (sub-sen delta ~2.3%) are manageable for an IG utility.

5. **Utility sector practice**: European utilities commonly use hybrid bonds (typically 10-25% of capital structure) to optimize ratings and maintain financial flexibility.

6. **Current financial stress but viable core business**: The comparable EBITDA of €2.4B supports some hybrid issuance, but the company shouldn't over-rely on any single instrument given uncertainties.

Given that Fortum has a stressed but recovering balance sheet, solid operating cash flows from continuing operations, and is a large European utility that would benefit from rating agency equity credit, a moderate allocation to hybrid bonds makes sense - but not an excessive one given the already elevated cost environment and need to maintain overall debt discipline.

<answer>25%</answer>