March 17 (Renewables Now) - French energy group Engie SA (EPA:ENGI) said on Thursday it has issued a EUR-1.5-billion (USD 1.6bn) green bond to back its development strategy in renewables and energy efficiency.
Engie said that the proceeds will be spent on renewable energy projects, including wind and solar, hydropower, energy efficiency and natural resources preservation projects.
The bond was issued in two tranches, one of EUR 700 million with a 7-year term and a 0.875% annual coupon, and a 11-year tranche of EUR 800 million with a 1.5 % annual coupon. The average coupon is 1.20% for a 9.1-year average duration.
At the same time, the company launched a bond tender offer for a total of EUR 700 million on seven outstanding bonds. It will be closed on March 23, 2017. Engie noted that the two transactions will allow it to reduce the average cost of its debt and extend its duration.
(EUR 1.0 = USD 1.078)