- German energy group RWE has announced the issuance of its first green US dollar bond, raising USD 2 billion.
- RWE will use the net proceeds for its growing green programme to invest EUR 55 billion globally.
German energy group RWE has announced the issuance of its first green US dollar bond, raising USD 2 billion (EUR 1.88bn). This is the company’s first green bond placement outside Europe.
The green bond enjoyed strong investor interest, with the order book oversubscribed 3.8 times. RWE’s Chief Financial Officer Michael Mueller said, “With our first US green bond, we are expanding our sustainable financing.”
“Going forward, we plan to be a regular issuer in both Euro and US markets.” RWE intends to issue bonds averaging 3-3.5 billion annually in both euros and US dollars until 2030.
“The US stands as our largest market outside of Europe, where we have more than doubled our net installed capacity since 2020 to 9 GW today,” the CFO revealed. He added that RWE wants to expand onshore and offshore wind, solar and batteries in the US with investments of about EUR 20 billion by 2030.
RWE will use the net proceeds for its growing green programme, under which it plans to invest EUR 55 billion globally and expand its green portfolio to over 65 GW by 2030. Furthermore, the issue was in two USD-1-billion tranches with maturities of 10 and 30 years, respectively.
The first tranche has a yield-to-maturity of 5.926 per cent, based on a coupon of 5.87 per cent per year and an issuance price of 99.619 per cent. For the second tranche, the yield-to-maturity is 6.261 per cent, based on a coupon of 6.250 per cent and an issuance price of 99.852 per cent.