EnBW successfully issues two senior bonds

Karlsruhe. EnBW today issued two corporate bonds with a combined issuance volume of €1.5 billion, one of which in green format. As with the company’s recent inaugural issuance in the Australian capital market, the proceeds of today’s bond issuance will be used as funding for the financial year 2025. Being Germany’s largest integrated energy group, EnBW is driving forward the development of the energy infrastructure of the future in all business areas along the energy value chain, resulting in a substantial need for investment.

Thomas Kusterer, EnBW Deputy CEO and CFO: “We have ample investment opportunities to successfully drive forward the green transformation of our portfolio. In the first nine months of this year, we invested around 40% more than in the same period last year. We currently have around 1.5 gigawatts of renewable energy under construction. A flagship project in this context is our 960 MW He Dreiht offshore wind farm in the German North Sea, which is scheduled to be connected to the grid by the end of 2025. Added to this are our new-build fuel switch projects: As the first utility to do so in Germany, we are already building three hydrogen-ready gas-fired power plants to replace old coal-fired units. The first of the new plants will go into operation in spring 2025.”

Marcel Münch, SVP Finance, M&A and Investor Relations, said: “The proceeds of today’s bond issuance will be used to finance transmission and distribution grids in line with the EU taxonomy, among others. At the beginning of July, we published an updated Green Financing Framework, which now includes the basis for green financing for our transmission grids. Our corporate strategy, and therefore our investment and its financing, is clearly focused on sustainability and decarbonization. At least 85% of our new financing will be sustainable by 2030.”

The bonds have a term of 4.5 and 11 years and a coupon of 3.000 and 3.750 percent respectively.