Swedish state-owned utility Vattenfall AB has issued GBP 250 million (USD 349m/EUR 292.5m) worth of hybrid green bonds in a bid to finance renewable energy and energy-related projects.
The offering of the fixed-rate bond was five times oversubscribed, Vattenfall said on Wednesday, adding that it marks its first issue of GBP-denominated hybrid bonds. The raised funds will help the utility to invest in fossil-free generation projects, including renewable energy and related infrastructure schemes, energy efficiency and industrial projects, as well as initiatives related to the electrification of transport and heat.
The bond, with a 62NC7 maturity, consists of 50/50 equity and debt and bears an annual coupon of 2.50%. It will be settled on June 29 and listed on the Nasdaq bourse in Stockholm.
“Green hybrid capital supports Vattenfall’s solid investment grade rating, reinforces the company’s sustainability commitment and provides cost efficient equity-like capital,” Vattenfall said.
Citi, Barclays and NatWest Markets acted as joint bookrunners of the transaction.
Source: Renewables Now