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1629825600000 | Press Release

EnBW successfully issues two subordinated bonds

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  • Total issue size €1 billion Euro, of which €500 million as green bond
  • Proceeds from green subordinated bond to be invested in wind and solar power projects and rollout of fast charging stations for electric vehicles
  • Green Financing Framework reviewed by sustainability agency ISS-ESG

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Green Bond

Karlsruhe. EnBW today successfully launched two subordinated bonds on the capital markets with an issue size of €500 million each, with one of the issues in the form of a green bond. The proceeds from the green subordinated bond are to be used exclusively to fund climate-friendly projects. Rating agencies Moody’s and Standard & Poor’s classify 50% of each of the two subordinated bonds as equity, which has a positive impact on the key performance indicators relevant to EnBW’s ratings.

“The proceeds from today’s green subordinated bond issue will be invested in sustainable environmental and climate protection projects in the categories offshore wind, onshore wind, photovoltaics and e-mobility infrastructure,” said CFO Thomas Kusterer. The proceeds from the other bond issue will likewise be directed to further implementation of the Company’s sustainability-oriented strategy but are not earmarked for specific projects.

EnBW aims to become climate-neutral overall by 2035. The clearly defined roadmap for achieving this comprises a phased, permanent exit from coal-fired power generation coupled with a further massive expansion of renewable energy sources. Half of the generation portfolio is to consist of renewables by as early as 2025.

CFO Thomas Kusterer emphasises: “Around 80% of the proceeds from the green subordinated bond will go into future-oriented projects that we currently have under development, such as the joint offshore wind power project with bp in the UK, or under construction, such as the Gottesgabe and Alttrebbin large-scale photovoltaic projects with 150 megawatts each in Brandenburg.” The remaining approximately 20% will be used to refinance existing green projects.

Sustainability rating agency ISS ESG has confirmed that today’s EnBW green subordinated bond issue complies with the Green Bond Principles and has good sustainability quality. EnBW, as the issuer, has also once again been attested good sustainability performance.

At the beginning of August, EnBW published an updated version of its Green Financing Framework, in which it lays down how the proceeds of green financing instruments are to be used.

The green subordinated bond is also certified by the Climate Bonds Initiative (CBI), whose high standards feature detailed sector-specific criteria for qualification as green bonds. All EnBW projects financed with proceeds from the bond issue conform with the EU taxonomy for environmentally sustainable economic activities and consequently already would comply in principle with a future EU Green Bond Standard. They also support the United Nations Sustainable Development Goals (SDGs).

EnBW was supported in issuing the bonds by a banking syndicate comprising Barclays and Deutsche Bank as joint structuring advisors and BBVA, BNP Paribas, LBBW, MUFG und NatWest as additional joint lead managers.

The green subordinated bond has a term of 60 years. For the bond issue with an initial coupon of 1.375%, EnBW has a right of early redemption that it can first exercise on 31 May 2028 and thereafter at any coupon date. The other subordinated bond with an initial coupon of 2.125% can first be redeemed on 31 May 2032. That bond has a term of 60 years.

The bonds are subordinate to all other financial liabilities and rank equally with EnBW’s outstanding subordinated bonds.

Information on the subordinated bonds at a glance:

Issue size
€500 million
€500 million
Issue size
Duration
€500 million
60 years
€500 million
60 years
Issue size
Initial coupon
€500 million
1.375%
€500 million
2.125%
Issue size
Issue price
€500 million
100%
€500 million
100%
Issue size
ISIN
€500 million
XS2381272207
€500 million
XS2381277008
Issue size
Issuer
€500 million
EnBW Energie Baden-Württemberg AG
Issue size
Bond ratings
€500 million
Baa3 (Moody’s), BBB- (S&P)
Issue size
First coupon date
€500 million
31 August 2022
€500 million
31 August 2022
Issue size
Issuer’s first redemption option
€500 million
31 May 2028
€500 million
31 May 2032
Issue size
Denomination
€500 million
€100,000
Issue size

Other key
bond features
€500 million
• EnBW has the right to defer interest payments. These must be made, however, if EnBW pays dividends.
• Subordinated.
• The full bond terms and conditions can be found in the bond prospectus.
Issue size
Joint structuring advisors
€500 million
Barclays / Deutsche Bank
Issue size
Joint lead managers
€500 million
BBVA, BNP Paribas, LBBW, MUFG und NatWest
Issue size
Legal advice
€500 million
Clifford Chance Deutschland LLP (for EnBW);
Linklaters LLP (for the banks)
Issue size
Exchange
€500 million
Luxembourg
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Martina Evers
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