Issued: Thursday, 28th September 2023
ESB Group on Tuesday (26th September) successfully raised €1 billion in bonds, which will be used to fund its significant capital investment programme as it continues on its journey to deliver a net-zero future. The funds were raised through the issuance of two €500m benchmark bonds, a 12 year 4.25% fixed-rate green bond which will be allocated exclusively to finance eligible green projects and a 5 year 4.00% fixed-rate bond.
The green bond funds will be allocated to renewable energy projects which will include investment in smart meters, battery storage, solar and wind generation. These investments will play a vital role in advancing Ireland's clean energy transition and supporting the company's ambitious strategic goals.
The issuance of ESB’s third Green Bond in five years follows on from the publication of its updated Green Bond Framework in September 2023 which reflects changes in sustainable finance best practice including aligning with the EU Taxonomy Regulation (a classification system for environmentally sustainable economic activities).
The bonds were purchased primarily by investors across Europe with orders received of circa €3.5 billion, demonstrating confidence in ESB’s investment programme which continues to deliver its ambitious Net Zero by 2040 strategy.
Anne Marie Kean, ESB Group Treasurer, stated: “The positive response to our bond issuance demonstrates strong investor confidence in ESB’s Net Zero by 2040 strategy and our ambition to lead the transition to a low-carbon future. Today’s successful bond issuance will allow us to continue to invest in our ambitious capital expenditure programme to support energy security and to lower the carbon intensity of our networks and our generation portfolio leading to a cleaner and more resilient energy future in line with the company’s strategic ambition of Net Zero by 2040.”
The placement was managed by Danske Bank, J.P. Morgan, RBC Capital Markets and Société Générale.
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