RWE Raises $2 bn via Green Bond Placement in US

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RWE, a player in the renewable energy sector, has achieved a significant milestone by placing its inaugural green US dollar bond, amounting to a total volume of US$2 billion.

The bond issuance comprised two tranches, with one valued at US$1 billion with a 10-year tenor and the other also at US$1 billion but with a 30-year tenor. Notably, the yield-to-maturity for the first tranche stands at 5.926 percent, based on a coupon of 5.875 percent per annum and an issuance price of 99.619 percent.

The second tranche boasts a yield-to-maturity of 6.261 percent, with a coupon of 6.250 percent per annum and an issuance price of 99.852 percent. The overwhelming investor interest resulted in the order book being 3.8 times oversubscribed, reaching a staggering US$7.6 billion, RWE said.

This milestone marks RWE’s debut green bond placement outside of Europe, signifying a strategic entry into the US bond market. With plans to issue bonds averaging between 3.0 to 3.5 billion euros and US dollars annually through to 2030, RWE demonstrates its commitment to sustainable financing on a global scale.

Michael Muller, Chief Financial Officer of RWE AG, expressed enthusiasm about the company’s foray into the US green bond market, emphasizing their intentions to become regular issuers in both the Euro and US markets.

Michael Muller highlighted the significance of the US market, where RWE has significantly increased its net installed capacity, reaching 9 gigawatts as of present, from just 2020. Positioned as one of the leading renewable energy firms in the US, RWE aims to further solidify its market presence in onshore and offshore wind, solar, and batteries, with investments totaling approximately €20 billion by the end of the decade.

The net proceeds from the bond issuance will be channeled towards RWE’s ‘Growing Green’ investment and growth program, underlining the company’s dedication to driving the energy transition and decarbonization of the energy system.

Having already invested €20 billion net between 2021 and 2023, RWE plans to allocate an additional €55 billion net globally towards renewable energies, batteries, flexible generation, and hydrogen projects by 2030. This strategic initiative aims to expand RWE’s green portfolio to over 65 gigawatts globally by the end of the decade, reaffirming its commitment to sustainable energy solutions. News Desk

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