EDF advances green finance with a new hybrid bond issue
EDF has completed a multi-tranche green hybrid bond issue, a meaningful step in how it funds the shift to cleaner energy. The transaction raised a total of €1.15 billion and £500 million, underscoring EDF’s ongoing commitment to sustainable finance and the transition to a low?carbon future.
What’s in the green hybrid bond
EDF priced new green perpetual subordinated notes, referred to as the “New Notes.” The offering was split into three distinct tranches, each with its own size, coupon, and first call date:
- €500 million with an initial coupon of 5.125% until 2029. EDF has the option to call the notes after 5.25 years.
- €650 million with an initial coupon of 5.625% until 2032, carrying an 8?year first call date.
- £500 million with an initial coupon of 7.375% until 2035, with a first call date after 11 years.
Taken together, the structure provides duration options in both euros and sterling. Coupons are set through 2029, 2032, and 2035 for the respective tranches, after which EDF may, at its discretion, redeem on the stated first call dates.
Financing the road to carbon neutrality
This green bond supports EDF’s goal of reaching carbon neutrality by 2050. Proceeds from the New Notes are earmarked for investments governed by EDF’s Green Financing Framework. The framework aligns with the European taxonomy and prioritizes extending the operational life of existing nuclear reactors in France—assets that anchor the country’s low?carbon power system.
Why this matters
Nuclear power in France operates with a low carbon intensity of 4gCO²/kWh. That metric helps explain why nuclear remains a cornerstone of EDF’s generation mix and why investing to sustain existing capacity fits the company’s decarbonization pathway.
Expected ratings and equity content
Ratings of B+/Ba1/BBB- are expected for the New Notes from the relevant agencies. In addition, the notes are anticipated to receive 50% equity content, a feature that can enhance their appeal to certain investors.
About EDF: leading the energy transition
EDF Group is an integrated energy operator active across generation, distribution, trading, and energy services. Its leadership in low?carbon power is reflected in 434 TWh of output from a diversified fleet led by nuclear and renewable sources, including hydropower. The group continues to invest in technologies that can further support the energy transition.
EDF’s mission is to help build a net?zero energy future by delivering practical, innovative solutions and services. That work supports environmental goals while also contributing to economic activity and community well?being. Today, EDF serves about 40.9 million customers and reported consolidated sales of €139.7 billion in the previous year.
Frequently Asked Questions
How much did EDF raise in this offering?
In total, EDF raised €1.15 billion and £500 million through the New Notes.
What will the proceeds be used for?
The funds are earmarked for investments under EDF’s Green Financing Framework to support its carbon?neutrality objective by 2050, with a focus on extending the lifetime of existing nuclear reactors in France.
What are the coupons and timelines for each tranche?
The tranches carry coupons of 5.125% (until 2029), 5.625% (until 2032), and 7.375% (until 2035). The first call dates are after 5.25 years, 8 years, and 11 years, respectively.
How does this issuance support EDF’s sustainability goals?
By channeling proceeds into projects aligned with the European taxonomy—most notably the lifetime extension of existing nuclear assets—this issuance helps fund low?carbon power that underpins EDF’s path to carbon neutrality.
How large is EDF’s customer base and business today?
EDF serves approximately 40.9 million customers and reported consolidated sales of €139.7 billion in the previous year.
