Vattenfall has successfully issued a £250m (€293m) green fixed-rate hybrid bond.
The issue was almost five times oversubscribed and the proceeds will finance investments that contribute to Vattenfall’s goal of enabling fossil-free living within one generation.
This is Vattenfall’s first hybrid bond issued in Sterling.
It is also the first GBP issuance under the Green Bond Framework, published in 2019, where proceeds from the bonds are earmarked for investments in the following four eligible categories.
These are renewable energy and related infrastructure, energy efficiency, electrification of transport and heat as well as industrial projects.
Vattenfall’s chief financial officer Kerstin Ahlfont said: “I am very pleased that our first GBP-denominated green transaction engaged so many investors that will now join Vattenfall in driving the energy transition forward.”
Green hybrid capital supports Vattenfall’s solid investment grade rating, reinforces the company’s sustainability commitment and provides cost efficient equity-like capital.
Citi acted as structuring advisor and Barclays, Citi and NatWest Markets as joint bookrunners on the bond issue.
The settlement date is 29 June 2021.