EnBW launches first green bond
Karlsruhe. EnBW today successfully launched its first green bond on the capital market, with an issue size of €500 million. The bond issue, with a 15-year term to maturity, was oversubscribed within hours. The coupon is 1.875 percent.
In contrast to conventional corporate bonds, the proceeds from a green bond must be used exclusively to fund climate-friendly projects. EnBW is among the first German companies to have launched a green bond of this size. Increasing numbers of institutional investors now prefer sustainable investments.
“The transformation of our company towards renewable energies and smart infrastructure solutions is a core element of our strategy,” said CFO Thomas Kusterer. Far beyond that, however, sustainability is today an integral part of EnBW’s business model. “The fact that the bond was several times oversubscribed shows that issuing it as a green bond supports our strategy. That has also been rewarded by the capital market.”
ISS-oekom, a rating agency internationally recognised in the sustainability sector, has con-firmed that the EnBW bond complies with the Green Bond Principles. The applicable criteria were drawn up by the International Capital Market Association (ICMA). EnBW had already published its Green Financial Framework on its website on 17 October. ISS-oekom confirms the bond’s good sustainability quality and EnBW’s good sustainability performance.
In addition, EnBW’s first green bond is also certified to the high standards of the Climate Bonds Initiative (CBI). These feature detailed sector-specific criteria for qualification as green bonds. The criteria are developed by teams of experts coordinated by an advisory board comprising institutional investors and (environmental) NGOs.
Kusterer: “For EnBW, today’s issue is a logical continuation of our strategy for the company as a whole. It is thus an example of funding follows strategy.”
The proceeds from the bond launched today will be allocated to projects in the fields of wind power, photovoltaics and electric mobility.
Information on the bond at a glance:.
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Maturity
|
2033
|
|---|---|
|
Maturity
Issue size
|
2033
€500 million
|
|
Maturity
Term to maturity
|
2033
15 years
|
|
Maturity
Issue price
|
2033
99.534%
|
|
Maturity
Coupon
|
2033
1.875%
|
|
Maturity
Securities identification numbers
|
2033
ISIN: XS1901055472
Common code: 190105547 WKN: A2RTNC |
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Maturity
Issuer
|
2033
EnBW International Finance B.V.
|
|
Maturity
Guarantor
|
2033
EnBW Energie Baden-Württemberg AG
|
|
Maturity
Key bond features
|
2033
|
|
Maturity
Structuring banks
|
2033
Société Générale, SEB
|
|
Maturity
Underwriters
|
2033
BBVA, DZ Bank, LBBW,
Morgan Stanley |
|
Maturity
Exchange
|
2033
Luxembourg
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Further information:
EnBW Green Financing Framework:
https://www.enbw.com/company/investors/bonds-share/bonds/green-bond.html
About ISS-oekom: ISS-oekom is one of the world’s leading ESG research and rating agencies with an established rating methodology and high market recognition. ISS-oekom analyses key equities and bond issuers worldwide for their environmental, social and governance performance.