Eversource Energy subsidiary NSTAR Electric has completed its first ever issuance of green bonds, with proceeds used to support the company’s solar and other low-carbon initiatives.
NSTAR Electric issued $400m (€353m) of 3.25% debentures that will mature on 15 May 2029.
The difference, or spread, between the 3.276% yield on the debentures and comparable United States Treasury obligations was 0.85%.
The unprecedented low spread was due to extremely high investor demand and NSTAR Electric’s strong credit rating profile.
This result will benefit NSTAR Electric’s customers whose bills reflect the company’s borrowing costs.
Eversource senior vice president and treasurer John Moreira said: “The spread of 85 basis points represents the tightest 10-year new issue spread for an unsecured utility green bond offering, which is tremendous news for our customers.
“The proceeds from the $400m debt issue were used to fund various ‘green’ initiatives including new solar projects and investments to help make our customers’ homes and businesses more energy efficient.”
Recently Eversource completed 62MW of utility-scale solar in Massachusetts.
The company now operates 22 solar sites in the commonwealth with the capacity to power more than 11,000 homes.