Vattenfall, the Swedish energy company, has successfully issued a £250m green fixed-rate hybrid bond to finance a range of eligible green projects, including renewable energy. The developer reported that the issue was almost three times oversubscribed, with an order book of over £700m. The funding will be used to invest in renewable energy, transmission and distribution of electricity, energy efficiency, and clean transportation that align with Vattenfall’s green financing framework.
This latest hybrid bond has a maturity of 60.25 years, with the first reset date after 5.25 years. It is Vattenfall’s first hybrid bond issued since June 2021, and the coupon is 6.875%. The bond issue was structured by NatWest Markets, with joint bookrunners including Barclays, NatWest Markets, and RBC Capital Markets.
Maria Paulinz, Head of Treasury at Vattenfall, stated that “the success of our first green hybrid bond since June 2021 once again underlines the broad-based support Vattenfall receives from investors to drive the energy transition forward.” The transaction reinforces the company’s commitment to sustainability and provides cost-efficient equity-like capital while supporting Vattenfall’s solid investment grade rating.
Vattenfall’s proactive management of its hybrid capital base ensures a stable layer of rating agency equity credit. The settlement date for this bond issue is 17 May 2023. Vattenfall’s green hybrid capital will enable it to make significant strides towards achieving its sustainability goals while also bolstering its reputation as a socially responsible company.
