EnBW places EUR-500m green bond to bankroll renewables, e-mobility plans

German electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has launched a EUR-500-million (USD 586.9m) green bond offering, seeking to finance wind, solar and e-mobility projects.

The transaction is part of a larger deal for a total of EUR 1 billion of subordinated bonds, while only one of the placements is for green bonds, the German firm said on Tuesday. Both EUR-500-million issues have a 60-year term and are subordinate to all of EnBW’s other financial liabilities.

Bearing an initial coupon of 1.375%, the green bond has a right of early redemption that can be exercised on May 31, 2028. The other bond has an initial coupon of 2.125% and can be first redeemed on May 31, 2032.

Funds from the green bond sale are earmarked for investments in onshore and offshore wind and solar projects, as well as for the roll-out of fast-charging stations for electric vehicles. More specifically, around 80% of the total raised amount will be set aside for “future-oriented” projects that are currently under development or construction. Among them are a Scottish offshore wind project with oil and gas group BP Plc (LON:BP) and several solar schemes in Brandenburg, Germany.

The proceeds from the other placement will support EnBW’s sustainability strategy but are not targeting specific projects, the utility said. Barclays and Deutsche Bank acted as joint structuring advisors of the deals.

EnBW has set a goal of becoming climate neutral by 2035.

(EUR 1.0 = USD 1.174)

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