Eversource pockets USD 400m from green bond

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

May 23 (Renewables Now) - NSTAR Electric Co, a unit of New England utility Eversource Energy (NYSE:ES), has raised USD 400 million (EUR 358.7m) from its first green bond sale that helped it back investments in low-carbon clean energy projects, including solar.

The 3.25% debentures will mature on May 15, 2029, Eversource said on Wednesday. The difference, or spread, between the 3.276% yield on the debentures and comparable US Treasury obligations was 85 basis points, which the utility explained is an “unprecedented low spread” resulting from high investor demand and the company’s strong credit rating profile.

“The spread of 85 basis points represents the tightest 10-year new issue spread for an unsecured utility green bond offering, which is tremendous news for our customers,” said Eversource’s senior vice president and treasurer John Moreira.

The proceeds will go to support green initiatives such as solar and energy efficiency projects.

At present, Eversource owns 22 photovoltaic (PV) assets in the Commonwealth of Massachusetts, capable of supplying power to over 11,000 households, while saving 36,000 tonnes of carbon dioxide (CO2) emissions annually.

(USD 1.0 = EUR 0.897)

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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.

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