E.on raises EUR 1.5bn from green bond issuance

German energy company E.on SE (ETR:EOAN) announced it has successfully raised EUR 1.5 billion (EUR 1.62bn) through green bond issuance, with the proceeds to be used for financing and/or refinancing projects focused on the energy transition.

The green bond was issued in two tranches, each worth EUR 750 million. The first one matures in March 2029 and has a coupon of 3.75%, while the second one matures in August 2033 and bears coupon of 4.00%, according to a recent statement.

E.on said the transaction was inspired by the attractive market conditions, allowing the German firm to significantly prefund the financing needs for the upcoming fiscal year 2024. The 2023 funding needs were already secured through a successful EUR-1.8-billion bond issuance in January.

“We want to invest a total of EUR 33 billion in the energy transition by 2027. Green bonds are an important financing instrument to do this, and we will continue to use them for our financing in the future,” said E.on’s CFO Marc Spieker.

(EUR 1 = USD 1.085)

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