Germany's EnBW launches EUR-500m green bond issue

German electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) on Monday announced the launch of a EUR-500-million (USD 564m) green subordinated bond issue, with a term of 60 years and an initial coupon of 1.875%.

Moody’s, Standard & Poor’s and Fitch rated the bonds at Baa2, BBB- and BBB, respectively. The rating agencies classify 50% of the issue as EnBW equity which has a positive effect on the rating profile.

EnBW will use all proceeds from the issue to refinance French wind and solar power company Valeco, which it bought in 2019.

Société Générale SA (EPA:GLE) and NatWest Markets (FRA:VWVH)
are acting as joint global coordinators of the issue, which will close on June 29. BBVA (BME:BBVA), Morgan Stanley (NYSE:MS), SEB (STO:SEB-A) and Unicredit SpA (BIT:UCG) are joint bookrunners.

“We continue to focus on expansion in renewable energies and plan to invest more than EUR 5 billion in relevant activities in Germany and selected foreign markets by 2025. Then, by the end of 2025, half of our generation portfolio will consist of renewable energies," CFO Thomas Kusterer commented.

(EUR 1.0 = USD 1.129)

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