EDF Successfully Completes Green Bond Issue for €2.25 Billion
EDF's Green Bond Initiative: A Step Towards Sustainability
EDF is proud to announce the successful completion of its senior green multi-tranche bond issue, raising a nominal amount of €2.25 billion. This substantial initiative reflects EDF's commitment to sustainable finance and dedication to contributing to a greener future.
Breakdown of the Bond Issuance
The bond issuance comprises three distinct tranches, each designed to suit various financial needs and investment timelines:
Details of the Tranches
1. A €750 million bond with a 7-year maturity and a fixed coupon rate of 3.250%.
2. A €1 billion bond that matures in 12 years, offering a fixed coupon rate of 4.000%.
3. A €500 million long-term bond, which matures after 20 years, featuring a fixed coupon rate of 4.625%.
Investment Focus Areas
Utilizing the net proceeds from these bonds, EDF plans to support various critical projects that are central to its green financing strategy:
Investment Allocations
The 7-year bond proceeds will primarily fund the lifespan extension of existing French nuclear reactors.
The 12-year bond proceeds are set to advance renewable energy and hydroelectric power initiatives.
Finally, the 20-year bond funds will be allocated to the Hinkley Point C project, which focuses on constructing two EPR nuclear reactors in the United Kingdom.
Conforming to Standards
All investments align with the criteria established in EDF's updated Green Financing Framework. This framework was recently assessed by S&P Global Ratings, who awarded it a medium green rating, reinforcing EDF's commitment to transparency and environmental responsibility.
Your Role in a Greener Future
EDF’s green bond transaction is not just about raising funds; it is about reinforcing the company's strategy to advance its contributions toward carbon neutrality by the year 2050. By securing these financial resources, EDF is better positioned to finance innovative energy solutions and sustainable projects.
Important Details of the Transaction
The settlement and delivery of the bonds are scheduled for a date in early May, with the expectation that the bonds will be admitted to trading on the regulated market of Euronext Paris shortly thereafter. Moreover, the expected ratings from S&P, Moody's, and Fitch indicate a stable investment opportunity for those interested in green financing.
About EDF
The EDF Group stands as a pivotal force in energy transition. As an integrated energy operator, it engages across all spheres of the energy sector. With its robust portfolio generating approximately 520TWh of low-carbon energy, EDF is at the forefront of the shift towards sustainable power. The company boasts a diverse energy generation mix, centered on nuclear and renewable resources, including hydropower.
With nearly 41.5 million customers relying on its services and recording sales of €118.7 billion, EDF's mission is clear: create a net-zero energy future. Through innovative solutions and services, EDF is committed to fostering environmental sustainability while driving economic growth.
Frequently Asked Questions
What is the purpose of EDF's bond issuance?
The bond issuance aims to raise €2.25 billion to finance sustainable projects and support EDF's goal of carbon neutrality by 2050.
How are the funds from the bonds allocated?
The funds will finance renewable energy projects, the extension of nuclear reactor lifespans, and the Hinkley Point C nuclear reactor project.
What are the ratings of the bonds?
The expected ratings for the bonds are BBB from S&P, Baa1 from Moody’s, and BBB+ from Fitch.
When are the bonds expected to start trading?
The bonds are expected to commence trading on the regulated market of Euronext Paris shortly after the settlement date in May.
What is EDF's role in the energy sector?
EDF plays a crucial role in the energy transition by generating and supplying low-carbon energy while investing in innovative technologies for sustainable development.
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