E.on issues EUR 800m green bond

German energy company E.on SE (ETR:EOAN) has issued a green bond worth EUR 800 million (USD 906.8m) to secure financing for sustainable projects that support the energy transition.

The bond is due in October 2034 and bears a coupon of 0.875%, E.on said on Tuesday.

The proceeds will be used to finance green projects under the company's Green Bond Framework that includes initiatives in the areas of electricity distribution infrastructure and equipment, renewable energy production and storage, energy efficiency as well as electric vehicle charging stations and supporting electric infrastructure.

Apart from the green bond, the Essen-based company placed another note of EUR 500 million to fund general corporate purposes. The bond matures in January 2026 and has a coupon of 0.125%.

The two tranches were oversubscribed with the combined orderbook reaching EUR 4.2 billion.

In November, the energy major unveiled a plan to spend EUR 22 billion through 2026 on the expansion of its electricity grid and invest about EUR 2 billion to advance digitalisation in an investment offensive with a focus on the energy transition.

(EUR 1 = USD 1.134)

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