German Utility Launches $2.5bn Bonds

German utility E.ON issued January 9 three bond tranches with a combined volume of €2.25 ($2.5bn)bn. The high level of demand enabled E.ON to secure favourable interest terms across all maturities, it said.

The bonds have three maturities: €750mn bond maturing in December 2023 with coupon of 0%; €1bn green bond maturing in September 2027 with coupon of 0.375% and a €500mn bond maturing in December 2030 with coupon of 0.750%.

The transaction was executed by a consortium of international banks and BNP Paribas, Deutsche Bank, JP Morgan and Santander served as active bookrunners.

The transaction followed a series of smaller issuances at the end of last year. The proceeds are intended to be used to refinance all bonds that are scheduled to mature in 2020 and to fund sustainable infrastructure and energy efficiency projects.

E.ON’s CFO Marc Spieker said: “With its investments in smart energy networks and sustainable customer solutions, E.ON is one of the leading companies driving the energy transition in Europe. This next successful green bond issuance shows that we are living up to our promise to include sustainability as an integral part of our funding structure.”