Engie has announced it has successfully issued its second Green Bond of €1,5 billion, with the proceeds to be used to finance renewable energy projects such as wind and solar farms, hydroelectric plants, energy efficiency projects and natural resources preservation projects.
A bond tender offer for a total amount of 700 million euros was launched simultaneously on seven outstanding bonds and are due to close today. These two transactions will enable the group to reduce the average cost of its debt while at the same time extend its duration.
The bond has two tranches: a 7-year tranche of €700 million with a 0.875% annual coupon, and a 11-year tranche of €800 million with a 1.5 % annual coupon. The average coupon amounts to 1.20% for a 9.1 years average duration.
To be eligible for the funds, projects financed must meet a number of environmental and social criteria in eight areas : fight against climate change and the conservation of the natural resources, environmental management, biodiversity, dialogue with stakeholders, business ethics, human rights, responsible procurement and health and safety. These criteria were developed by Engie, reviewed by Vigeo Eiris and are published on the Engie website.
