ESB issues second green bond to finance renewable projects

4C Offshore | Tom Russell
By: 19/01/2022 ESB
ESB has placed a €500 million 1.0% fixed-rate green bond, maturing in July 2034. This is the second green bond the energy company has issued in less than three years, following its placement of Ireland’s first corporate green bond in 2019.  

The net proceeds from the transaction will be allocated to finance eligible green projects, such as renewable energy generation and energy efficiency projects including the continuing roll out of the National Smart Metering Programme by ESB Networks.
 

The bond is being purchased primarily by investors across Europe, with orders received of more than €2 billion, demonstrating confidence in ESB’s investment programme which continues to deliver its ambitious Brighter Future strategy.
 

ESB’s first public green bond helped finance a number of the group’s major green infrastructure projects including the
Galloper offshore wind farm off the UK coast.  

ESB reports on the environmental contribution of the projects funded by green bonds in a Green Bond Report. This is reviewed by Sustainalytics, one of the world’s leading ESG ratings and analytics firms.
 

Pat Fenlon, Executive Director, Group Finance and Commercial, ESB, said: “The positive response to our second green bond issuance demonstrates strong investor confidence in ESB’s Brighter Future strategy and our ambition to lead the transition to a low-carbon future. We continue to develop a pipeline of significant infrastructural projects across a range of technologies including renewable generation and critical energy infrastructure that will deliver a smart electricity network and help empower customers to become more energy efficient. Green Bonds are an effective tool for investors to channel funds into assets and projects which have a positive and demonstrable climate change impact.”
 

The placement was managed by BBVA, BNP Paribas, Danske Bank, J.P.Morgan and Société Générale.