Spanish corporate group Redeia Corporacion SA launched a EUR 500 million (USD 534.9 million) green bond on Thursday aimed at financing the development of Spain's transmission grid and advancing its energy transition efforts.
The eight-year green notes carry an annual coupon of 3.375% and were issued at 99.428% of their face value, yielding 3.458%. Notable investors in the issuance include the European Investment Bank (EIB) and Spanish lender Instituto de Credito Oficial (ICO), according to Redeia.
Proceeds from the bond issuance will be directed towards funding and/or refinancing eligible green projects managed by Redeia's subsidiary, Red Electrica de Espana (REE), which oversees Spain's power grid infrastructure.
Redeia highlighted that REE has already made substantial progress in executing its current transmission grid plan, which spans the 2021-2026 period and has received government approval.
The plan, totaling EUR 6.96 billion, focuses on upgrading the grid to accommodate increased renewable energy integration and constructing interconnections with Spain's non-mainland territories as well as neighboring countries such as France, Morocco, Portugal, and Andorra.
