EnBW Energie Baden-Wurttemberg AG today issued a senior bond with a principal amount of EUR500 million.
The bond issue has a 10-year term to maturity and a coupon of 0.250%. Thanks to significant demand - the bond was oversubscribed 4 times - EnBW was able to obtain attractive terms. This is EnBW's third issue in the current financial year, following a EUR500 million senior bond at the beginning of April and a EUR500 million green subordinated bond in mid-June.
The banking syndicate consisted of BNP Paribas and NatWest Markets as joint global coordinators and DZ BANK, Helaba and MUFG as additional joint bookrunners.
EnBW has invested heavily in the expansion of renewable energy and grids in recent years. In the next phase, the company will develop into a sustainable infrastructure partner, including for sectors beyond energy. Up to around EUR12 billion is to be invested by 2025 in further expanding the established businesses of renewables, electricity grids, electric mobility and also broadband, as well as in the expansion of new business areas. As it does so, EnBW also plans significant earnings growth to EUR3.2 billion by the end of 2025.
Thomas Kusterer, EnBW CFO: 'As a result of the portfolio transformation over the last few years, EnBW now has a robust business model with stable cash flows in its operating business. We also firmly believe that a sustainability strategy that is consistently embedded in the corporate strategy leads to better access to the capital markets, and thus enables a company to finance itself at lower cost overall.'
EnBW aims to be climate-neutral by 2035. The company adopted a specific action package for this purpose just last week.
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