e.on has successfully issued two bond tranches worth £641 million (€750 million) each, and will use the proceeds to finance projects including clean transportation and renewable energy projects.
The company’s Greenbond Framework outlines the available projects which include solar, wind power and hydrogen production, storage and distribution.
The projects financed will be projects that fit in with UN sustainable development goals – such as increasing the share of renewable energy in the global energy mix, strengthening resilience and upgrading infrastructure and developing sustainable transport.
Its guidelines also include a ‘Do No Significant Harm’ set of criteria which look at health and safety, regulatory and reputational risks.
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“The high demand from investors underlines again that we are on the right track with our strategy, which is focused on sustainability, digitalisation and growth. E.ON is determined to drive forward the energy transition in Europe,” said E.ON CFO Marc Spieker.
“We want to invest a total of €33 billion in the energy transition by 2027. Green bonds are an important financing instrument to do this, and we will continue to use them for our financing in the future.”
It follows the news that, according to recent figures from Linklaters, green bonds have reached a record high in the first six months of 2023 with investors pledging more than $351bn to the bonds.
Many brands have recently used sustainability linked loans and bonds, including Pernod Ricard and Coca-Cola, as well as fashion houses including Burberry, Chanel and Prada.
