Vattenfall issues EUR-500m green bond to back fossil-fuel-free future


June 14 (Renewables Now) - Swedish state-owned utility Vattenfall AB has issued a EUR-500-million (USD 564.1m) green bond in its first offering of such securities, seeking to back a range of initiatives, including renewables projects.

The sale is in line with Vattenfall’s plans to invest in fossil-free generation and climate-smart solutions, the company announced on Thursday. Тhe funds from the transaction will go to support renewable energy and related infrastructure, energy efficiency, electrification of transport and heat and industrial projects.

The senior unsecured bond has a tenor of seven years and represents the first international issuance under Sweden's Euro Medium Term Note Programme that will be listed on the Nasdaq bourse in Stockholm. With a yield of 0.553% and an annual coupon 0.500%, the bond will be settled on June 24, 2019.

According to Vattenfall's CFO Anna Borg, the offering was met with “very strong interest.” Citi, Deutsche Bank, Nordea and SEB were the joint bookrunners on the deal. 

(EUR 1.0 = USD 1.128)

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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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