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Morgan and Mona in the Irish Sea and Morven wind project
2023-01-18
German utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has issued two green bonds with a combined size of EUR 1 billion (USD 1.04bn) to fund the development of the power grid in southern Germany and renewable energy projects. The bond offerings drew strong investor demand, with order books totaling around EUR 7 billion, EnBW said on Tuesday.
The first bond, worth EUR 500 million, is for seven years at 4.049% coupon rate and will be used to expand the power grid in the state of Baden-Wuerttemberg operated by the company's subsidiary Netze BW. The second note has an amount of EUR 500 million, a four-year maturity and yields 3.625%. The proceeds will support offshore wind projects Morgan and Mona (total capacity of 3 GW) in the Irish Sea and Morven wind project with 2.9 GW off Scotland's coast - joint ventures between EnBW and oil giant BP Plc (LON:BP).
Additionally, part of the funds from the four-year issue will go to supporting onshore wind farms in Germany such as those located in Brandenburg, Schleswig-Holstein and Saxony-Anhalt, plus existing solar parks in Mecklenburg-Western Pomerania and Baden-Wuerttemberg. “We must now accelerate Germany's transition to carbon neutral energy sources. Every megawatt-hour from renewable energy reduces the reliance on fossil fuels," CFO Thomas Kusterer said. "This is why most of our investments are allocated to grid expansion and expanding renewables."
German utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has issued two green bonds with a combined size of EUR 1 billion (USD 1.04bn) to fund the development of the power grid in southern Germany and renewable energy projects. The bond offerings drew strong investor demand, with order books totaling around EUR 7 billion, EnBW said on Tuesday.
The first bond, worth EUR 500 million, is for seven years at 4.049% coupon rate and will be used to expand the power grid in the state of Baden-Wuerttemberg operated by the company's subsidiary Netze BW. The second note has an amount of EUR 500 million, a four-year maturity and yields 3.625%. The proceeds will support offshore wind projects Morgan and Mona (total capacity of 3 GW) in the Irish Sea and Morven wind project with 2.9 GW off Scotland's coast - joint ventures between EnBW and oil giant BP Plc (LON:BP).
Additionally, part of the funds from the four-year issue will go to supporting onshore wind farms in Germany such as those located in Brandenburg, Schleswig-Holstein and Saxony-Anhalt, plus existing solar parks in Mecklenburg-Western Pomerania and Baden-Wuerttemberg. “We must now accelerate Germany's transition to carbon neutral energy sources. Every megawatt-hour from renewable energy reduces the reliance on fossil fuels," CFO Thomas Kusterer said. "This is why most of our investments are allocated to grid expansion and expanding renewables."