E.ON successfully raises €1.5 billion of Green Bonds
- Bond issuance to fund sustainable infrastructure and energy efficiency projects
- Green Bonds meet very high investor demand
- Low coupons reduce E.ON’s average financing costs
Today E.ON issued two Green Bond tranches of €750 million each. The high level of demand enabled E.ON to secure favorable interest terms across both maturities:
- €750 million bond maturing in August 2024 with coupon of 0%
- €750 million bond maturing in February 2030 with coupon of 0.35%
The transaction was executed by the international bank consortium that supported E.ON’s acquisition financing. BofA Merrill Lynch, BNP Paribas, ING, Société Générale served as active bookrunners.
A Green Bond is a fixed-interest security whose proceeds are used to fund sustainable infrastructure and energy efficiency projects. Investors thus have the opportunity to participate in the (re-)financing of E.ON’s sustainable investment projects which are in line with E.ON’s Green Bond Framework.
In line with E.ON’s objective of providing a sustainable and secure supply of electricity to society, E.ON has developed a Green Bond Framework following the well-established ICMA Green Bond Principles. The framework focuses on sustainable projects in both the Energy Networks and Customer Solutions businesses. In the Energy Networks business these are renewable energy grid connections or projects that make our power grids smarter and thus lay the foundation for a successful energy transition. In the Customer Solutions segment, projects include investments into sustainable city energy solutions, smart meters and charging stations for electric cars.
E.ON CFO Marc Spieker: “Sustainability runs like a red thread through the business of the new E.ON, our investments and finances. Already today, an important part of our investments leads to greater energy efficiency and climate protection. We will significantly increase this share over the coming years. Green Bonds help us financing these investments. With our Green Bonds, international investors can now participate in financing our projects that make peoples’ lives more sustainable. The low coupons of both bonds reduce E.ON‘s average financing costs and thus support our business development.”
E.ON's Green Bond Framework, the Second Party Opinion (a certification by the renowned rating agency Sustainalytics) and the presentation from the Investor Call are available online at: