- First Irish issuance under the European Green Bond Regulation
- Proceeds will be allocated to eligible investments in accordance with ESB's recently updated Green Finance Framework and European Green Bond Factsheet
ESB is pleased to announce that on Tuesday, 22nd September, it has successfully raised €500 million through its inaugural European Green Bond (EuGB), marking a significant milestone in the company's sustainable finance programme and supporting the delivery of its Net Zero carbon emissions by 2040 strategy.
The green bond has a tenor of 10 years and carries a coupon of 4.375%. The proceeds will be allocated to eligible investments supporting projects that contribute to the decarbonisation of Ireland's energy system.
The issuance follows the publication in August of ESB's updated Green Finance Framework (“Framework”) and accompanying European Green Bond Factsheet (“Factsheet”), which sets out how the proceeds from green financing will be used and managed. Eligible investments under the Framework and Factsheet include electricity transmission and distribution infrastructure, renewable electricity generation and battery energy storage systems.
The Framework has been independently assessed by Moody’s Ratings and received its highest sustainability quality score of “Excellent”. Moody's also completed a pre-issuance review of the Factsheet.
ESB is planning capital investment of approximately €20 billion by 2030 to deliver an electricity system that can support housing growth, economic expansion and technological transformation across society, in line with the Government’s National Development Plan.
The transaction represents ESB's fourth green bond and its first issuance under the European Green Bond Regulation, which is also the first Irish corporate to issue in this format and demonstrates the company's continued commitment to transparency, credibility and best practice in sustainable finance.
Anne Marie Kean, ESB Group Treasurer, commented: "The successful completion of ESB's inaugural European Green Bond is an important milestone in the evolution of our sustainable finance programme. The strong investor support received reflects confidence in ESB's strategy and our significant investment programme to modernise and expand Ireland's electricity infrastructure. It also indicates the value that investors put on having a clear and transparent basis for supporting this journey."
BBVA Corporate & Investment Banking and ING, as Joint Sustainability Coordinators, supported ESB in the development of its updated Green Finance Framework and European Green Bond Factsheet. BBVA, Goodbody, ING, MUFG and Société Générale acted as Joint Bookrunners on ESB's inaugural European Green Bond issuance.
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