Germany-headed energy utility major E.ON SE has announced that it has successfully issued two green bond tranches with a combined volume of EUR 1.5 billion backed by a combined peak order book of EUR 4.3 billion.
The proceeds of the green bonds will be used to finance and/or refinance Eligible Green Projects as defined in E.ON’s Green Bond Framework – projects related to Renewable Energy, Energy Efficiency, and Clean Transportation that fit with E.ON’s core businesses and sustainability strategy.
- The first tranche of EUR 750 million maturing in March 2029 has a coupon of 3.75 percent;
- The second tranche of EUR 750 million matures in August 2033 with a coupon of 4.00 percent.
The attractive market environment allowed E.ON to significantly pre-fund the financing needs for the upcoming fiscal year 2024, while 2023 funding needs were already covered successfully by a EUR 1.8 billion green bond issuance in January 2023.
The high demand from investors underlines again that we are on the right track with our strategy, which is focused on sustainability, digitalization, and growth. E.ON is determined to drive forward the energy transition in Europe. We want to invest a total of EUR 33 billion in the energy transition by 2027. Green bonds are an important financing instrument to do this, and we will continue to use them for our financing in the future, commented Marc Spieker, CFO at E.ON.
Bank of America Securities, Deutsche Bank, Natwest Markets, and Unicredit served as active bookrunners in the transaction.
