German utility EnBW has launched its first two green hybrid bonds on the capital markets with a total issue size of EUR 1 billion which will be used to fund offshore and onshore wind projects and photovoltaics.
This makes EnBW the first German green hybrid bond issuer, the company said. Rating agencies Moody’s, Standard & Poor’s and Fitch classify 50 percent of each of the hybrid bonds as equity for EnBW. The proceeds from the green bonds are to be used exclusively to fund climate-friendly projects.
“In line with our strategy, we are investing increasingly in climate-friendly growth projects. A second issuance of green bonds is therefore a logical next step for us. EnBW launched its first green bond with an issue size of €500 million on 24 October 2018. The proceeds from the two new hybrid bond issues are earmarked for expanding offshore and onshore wind power and photovoltaics,” EnBW’s CFO Thomas Kusterer said.
Kusterer also added that the new bonds were oversubscribed several times in a short period of time.
A syndicate of banks comprised BNP Paribas and Deutsche Bank as Joint Global Coordinators and Joint Structuring Advisors as well as Barclays, BayernLB, Citi, HSBC and Morgan Stanley as Joint Lead Managers.
EnBW is the first company to launch bonds under the new EU Prospectus Regulation of 21 July 2019.
The two bonds, each with an issue size of EUR 500 million and a settlement date on 5 August 2019 will mature in some 60 years.