E.on issues EUR-1bn green bond

German energy company E.on SE (ETR:EOAN) has issued a green bond worth EUR 1 billion (USD 1.05bn) to finance green projects focused on the energy transition.

The note is due in January 2035 and bears a coupon of 3.875%, E.on said last week.

The green bond was placed together with another note of EUR 800 million maturing in January 2028 with a coupon of 3.500%. The proceeds from this tranche will be used for general corporate purposes.

The offering drew strong investors' interest with the order book reaching EUR 5.9 billion.

Commerzbank, JP Morgan, Morgan Stanley and MUFG Securities acted as bookrunners of the transaction.

The power company noted that the proceeds from the latest issue, in combination with financing secured in 2022, are enough to cover major parts of its funding needs in 2023.

Last year, E.on issued an EUR-800-million green bond in January which was followed by two more green notes worth a combined EUR 1.5 billion in March.

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