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1705424523000 | Press Release

EnBW successfully issues green subordinated bond

€500 million issue size . High level of investment required for energy transition
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Karlsruhe. EnBW today successfully issued a green subordinated bond issue with a total issue size of €500 million. The high level of investor demand was reflected in an order book of around €4.5 billion at its peak.

In line with the criteria in the EnBW Green Financing Framework, the proceeds will be used exclusively to fund climate-friendly projects. These include solar farms in Germany and France, onshore and offshore wind farms, fast-charging stations for electric vehicles and the expansion and upgrading of grid infrastructure.

EnBW’s sustainability-oriented business model spans the entire energy value chain. “As one of the largest utilities in Germany, EnBW covers all facets of the energy transition. We consistently base our investment decisions on sustainability criteria. Including today’s issue, EnBW has already issued green bonds for a total of €5.5 billion since 2018,” said CFO Thomas Kusterer.

Rating agencies Moody’s and Standard & Poor’s classify 50% of the subordinated bond as equity. This has a positive impact on EnBW’s rating-related financial performance indicators.

Sustainability rating agency ISS-Corporate has confirmed that today’s EnBW green subordinated bond complies with the Green Bond Principles and has good sustainability credentials. EnBW has also been reaffirmed as having good sustainability performance. In addition, the green bond is certified according to the high standards of the Climate Bonds Initiative (CBI). These include detailed sector-specific criteria for qualifying as a green bond.

The green subordinated bond has a term of 60 years. EnBW has the right to redeem the bond, which has an initial coupon of 5.250%, for the first time on 23 October 2029. The bond is subordinated to all other financial liabilities and ranks pari passu with EnBW’s outstanding subordinated bonds.

EnBW was supported in the issue by a banking syndicate comprising Deutsche Bank, HSBC and SMBC together with Barclays, MUFG, NatWest and Société Générale. The issue date is 23 January 2024.

Information on the bond at a glance:

Issue size
€500 million
Issue size
Duration
€500 million
60 years
Issue size
Initial coupon
€500 million
5.250%
Issue size
Issue price
€500 million
100%
Issue size
Issuer
€500 million
EnBW Energie Baden-Württemberg AG
Issue size
Bond ratings
€500 million
BBB- (S&P), Baa3 (Moody’s)
Issue size
First coupon date
€500 million
23.01.2025
Issue size
First redemption option
€500 million
23.10.2029
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 global coordinators and joint structuring advisers
€500 million
Deutsche Bank, HSBC and SMBC
Issue size
Joint active bookrunners
€500 million
Barclays, Deutsche Bank, HSBC, MUFG, NatWest, SMBC and Société Générale
Issue size
Exchange
€500 million
Luxembourg
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Martina Evers
Group Spokesperson
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