ESB Group has successfully raised €1 billion through the issuance of two benchmark bonds. This substantial capital injection is earmarked to propel the company's extensive capital investment program as it marches steadfastly towards achieving a net-zero future.
The two bonds, each valued at €500 million, are a testament to ESB Group's commitment to sustainable finance and its dedication to environmentally responsible initiatives. The first is a 12-year 4.25% fixed-rate green bond, exclusively allocated to financing eligible green projects. These green bond funds will be directed towards renewable energy endeavors, encompassing investments in smart meters, battery storage, and the development of solar and wind energy generation.
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This milestone follows ESB's publication of its updated Green Bond Framework in September 2023, which aligns with the EU Taxonomy Regulation—a classification system for environmentally sustainable economic activities. This framework reflects ESB's proactive approach to embracing sustainable finance best practices and underscores its commitment to environmental stewardship.
Investors across Europe displayed notable enthusiasm for ESB's green bonds, with orders totaling approximately €3.5 billion. This overwhelming response signifies a resounding vote of confidence in ESB's ambitious Net Zero by 2040 strategy, which aims to substantially reduce carbon emissions and contribute to a cleaner, more sustainable energy future.
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Anne Marie Kean, ESB Group Treasurer, expressed her satisfaction with the successful bond issuance, stating, “Today's successful bond issuance will allow us to continue to invest in our ambitious capital expenditure program to support energy security and to lower the carbon intensity of our networks and our generation portfolio, leading to a cleaner and more resilient energy future in line with the company's strategic ambition of Net Zero by 2040.”
The placement of these bonds was expertly managed by Danske Bank, JP Morgan, RBC Capital Markets, and Société Générale, further underlining ESB Group's strong position in the global financial market and its unwavering commitment to sustainable energy solutions.
