German developer RWE has placed its first green US dollar bond with a total volume of $2bn.
The sum was issued in two tranches of $1bn with 10-year tenor and $1bn with 30-year tenor, respectively.
For the first tranche, the yield-to-maturity amounts to 5.926%, based on a coupon of 5.875% p.a. and an issuance price of 99.619%.
For the second tranche, the yield-to-maturity amounts to 6.261%, based on a coupon of 6.250% p.a. and an issuance price of 99.852%.
The issuance was met with strong interest from investors and the order book was 3.8 times oversubscribed at $7.6bn, said the developer.
This is RWE’s first green bond placement outside Europe and marks the strategically important entry into the US bond market.
RWE plans to issue 3bn-3.5bn of bonds per year on average through to 2030 in both Euros and US dollars.
“With our first US green bond, we are expanding our sustainable financing,” said RWE AG chief financial officer Michael Müller.
“Going forward, we plan to be a regular issuer in both Euro and US markets. The US stands as our largest market outside of Europe where we have more than doubled our net installed capacity since 2020 to 9GW today.
“As one of the leading renewable energy companies in the US, we want to further expand our market position in onshore and offshore wind as well as in solar and batteries with investments of about €20bn by the end of this decade.”
RWE intends to use the net proceeds for its ‘Growing Green’ investment and growth programme.
With this, the company is making an important contribution to the success of the energy transition and the decarbonisation of the energy system, it said.
RWE has already invested €20bn net between 2021 and 2023 and plans to invest a further €55bn net globally in renewable energies, batteries, flexible generation, and hydrogen projects by 2030.
With this, the company intends to expand its green portfolio globally to more than 65GW through the end of the decade.