German energy company E.on SE (ETR:EOAN) on Wednesday issued two green bonds worth a total of EUR 1.5 billion (USD 1.64bn) to finance sustainable projects with a focus on the energy transition.
The transaction consists of two tranches each with a volume of EUR 750 million. One of the tranches has a coupon of 0.875% and maturity in January 2025 while the other one is due in March 2031 and bears a coupon of 1.625%.
E.on noted that investor interest in the offering was very strong with orders reaching EUR 12 billion.
The proceeds will be used to finance green projects under the company's Green Bond Framework that includes initiatives in the areas of electricity distribution infrastructure and equipment, renewable energy production and storage, energy efficiency as well as electric vehicle charging stations and supporting electric infrastructure.
Goldman Sachs Bank Europe SE, J.P. Morgan (NYSE:JPM), NatWest Markets and Santander (BME:SAN) served as active bookrunners on the transaction.
The two green bonds follow the placement of another EUR-800-million green note and a bond of EUR 500 million in January. E.on said further that the capital raised with the four bonds is enough to cover the majority of its currently expected refinancing needs for 2022.
(EUR 1 = USD 1.098)
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