EnBW places EUR-500m green bond to bankroll renewables, e-mobility plans

Gena96/Shutterstock.com

August 25 (Renewables Now) - German electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has launched a EUR-500-million (USD 586.9m) green bond offering, seeking to finance wind, solar and e-mobility projects.

The transaction is part of a larger deal for a total of EUR 1 billion of subordinated bonds, while only one of the placements is for green bonds, the German firm said on Tuesday. Both EUR-500-million issues have a 60-year term and are subordinate to all of EnBW’s other financial liabilities.

Bearing an initial coupon of 1.375%, the green bond has a right of early redemption that can be exercised on May 31, 2028. The other bond has an initial coupon of 2.125% and can be first redeemed on May 31, 2032.

Funds from the green bond sale are earmarked for investments in onshore and offshore wind and solar projects, as well as for the roll-out of fast-charging stations for electric vehicles. More specifically, around 80% of the total raised amount will be set aside for “future-oriented” projects that are currently under development or construction. Among them are a Scottish offshore wind project with oil and gas group BP Plc (LON:BP) and several solar schemes in Brandenburg, Germany.

The proceeds from the other placement will support EnBW’s sustainability strategy but are not targeting specific projects, the utility said. Barclays and Deutsche Bank acted as joint structuring advisors of the deals.

EnBW has set a goal of becoming climate neutral by 2035.

(EUR 1.0 = USD 1.174)

More stories to explore
Share this story
Newsletter
Tags
 
About the author
Browse all articles from Veselina Petrova

Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription
\