US utility Southern Power issues USD 1bn of green bonds
Wind and solar power plant in the US. Featured Image: welcomia/Shutterstock.com
Southern Power said on Wednesday it has issued USD 1 billion (EUR 936m) worth of green bonds and thus became the country’s first investment-grade electric utility to back renewables by offering such securities.
The company, which is a unit of Southern Co (NYSE:SO), plans to allocate the net proceeds of these green bonds to eligible renewable energy projects in the US, including solar and wind parks.
Since 2012, Southern Co has added or announced over 3,600 MW of renewable energy projects. Currently, its subsidiary has about 1,550 MW of green energy generating capacity owned, under development or under contract. The entire group has committed some USD 20 billion to developing its portfolio of low- and zero-carbon emission generating resources.
During the third quarter (Q3) of 2015, the global green bond market reached USD 6.9 billion in total issuance. It slightly slowed from a high in April-June, but still saw the biggest single issuance so far this year of USD 1.1 billion, according to the Climate Bonds Initiative's (CBI) Q3 green bond underwriters overview.