EnBW has issued two green hybrid bonds with a combined value of €1bn.
The company said the transaction was oversubscribed 10 times at peak on broad-based international demand.
It added that proceeds can be invested across the energy value chain in climate-friendly projects under the EnBW Green Financing Framework.
Hybrid financing instruments are classified as 50% equity by Moody’s and Standard & Poor’s, which supports EnBW’s rating-related financial performance indicators.
Marcel Münch, senior vice president finance, M&A and investor relations, said: “With this transaction, we have permanently increased our hybrid volume from €2.5 billion to €3.5 billion.
“This strategic step strengthens our balance sheet for the long term and increases our financial flexibility for implementing the largest investment program in EnBW’s history.”
EnBW is investing up to €50bn in the transformation of the energy system from 2024 to 2030, according to the company.
Münch added: “With the current bond issue and the pre-funding last fall, we have already covered a large part of our financing needs for 2026.”
EnBW has issued two €500m tranches, each with a 30-year term and first redemption options in 2031 and 2035 respectively.