Vattenfall has successfully issued a £250m green fixed-rate hybrid bond to finance green projects including renewable energy.
The Swedish developer said that the issue was almost three times oversubscribed.
The funding will go towards eligible green projects that meet the requirements of Vattenfall’s green financing framework.
Investments include renewable energy, transmission and distribution of electricity, energy efficiency and clean transportation.
This is Vattenfall’s first hybrid bond issued since June 2021 and has a maturity of 60.25 years with the first reset date after 5.25 years.
The transaction attracted an orderbook of above £700m, Vattenfall said.
The coupon is 6.875%, it added.
Head of Treasury at Vattenfall Maria Paulinz said: “The success of our first green hybrid bond since June 2021 once again underlines the broad-based support Vattenfall receives from investors to drive the energy transition forward.”
With this transaction, Vattenfall proactively manages its hybrid capital base ensuring a stable layer of rating agency equity credit.
The Green hybrid capital reinforces the company’s sustainability commitment, provides cost efficient equity-like capital while supporting Vattenfall’s solid investment grade rating, according to the developer.
NatWest Markets acted as structuring advisor and Barclays, NatWest Markets and RBC Capital Markets as joint bookrunners on the bond issue.
The settlement date is 17 May 2023.