August 13 (Renewables Now) - US insulation and roofing specialist Owens Corning (NYSE:OC) said on Monday it has sold USD 450 million (EUR 402m) worth of green bonds to expand its renewables and energy efficiency initiatives.
The company will allocate the funds to back investment in wind and solar projects and enter long-term power purchase agreements (PPAs) for renewables generation. Separately, it will spend some funds to lift energy efficiency in internal projects and invest in waste reduction and recycling programmes. Capital expenditures are also planned for research and development of more efficient insulation products and glass fibre and fabric materials used in wind turbine blades.
The bond, with a coupon of 3.95%, has a term of 10 years. Its issuance served to finance tender offers for up to USD 450 million of outstanding notes due in 2022 and 2036. The raised amount after fees stands at USD 445 million.
The green bond sale was the first one of Owens Corning, the company said, adding it is the first US industrial company to issue such financial instruments.
(USD 1.0 = EUR 0.894)