RWE issues €1.35 billion bond for ‘Growing Green’ strategy

4C Offshore | Tom Russell
By: 18/11/2021 RWE

RWE has issued a further green bond with a total volume of €1.35 billion. The bond was issued in two tranches of €0.75 billion with seven-year tenor and €0.6 billion with twelve-year tenor respectively.

For the first tranche, the yield-to-maturity amounts to 0.528%, based on a coupon of 0.5% p.a. and an issuance price of 99.808%.  For the second tranche, the yield-to-maturity amounts to 1.077 %, based on a coupon of 1.0% p.a. and an issuance price of 99.138%. The issuance met with keen interest from investors.

In June this year, RWE had already issued its first green bond with a volume of €0.5 billion.  

As stated in the RWE Green Bond Framework, only wind and solar projects are eligible for green bond funding. This is in line with the United Nations’ Sustainability Goal number 7 to increase the share of renewable energies in the worldwide electricity mix. In addition, RWE’s framework is based on the internationally recognised Green Bond principles of the International Capital Market Association (ICMA). Furthermore, a second-party opinion has been issued from the internationally renowned sustainability agency Sustainalytics.

With its new strategy ‘Growing Green’, RWE plans to invest €50 billion gross in its core business. That means an average of €5 billion gross each year for offshore and onshore wind, solar, batteries, flexible generation and hydrogen. The company is thus expanding its portfolio by 25 GW net to 50 GW in the attractive markets of Europe, North America, and the Asia-Pacific Region. 

RWE is actively developing a number of offshore wind projects across the globe and, by 2030 it intends to triple its offshore wind capacity from 2.4 GW to 8 GW.

“The response to the second green bond issued by RWE underlines that our investors support our investment and growth strategy ‘Growing Green’. The proceeds will exclusively go into wind power and solar projects. We will be investing €50 billion gross in expanding our powerful, green portfolio to 50 gigawatts through to 2030. We have the financial basis to do this – due to our outstanding creditworthiness we have excellent access to the financial market and have strong cash flows from operating activities, from which we are funding by far the largest share of our growth programme," said Michael Müller, CFO of RWE AG.