Vattenfall Issues its First Green Bond Worth EUR 500 Mn

In line with the company’s investments in fossil-free energy and climate-smart solutions, Vattenfall has for the first time issued a green bond.

In line with the company’s investments in fossil-free energy and climate-smart solutions, Vattenfall has for the first time issued a green bond. The size of the bond issue is EUR 500 million, with a tenor of seven years. The bond is the first international issuance under an EMTN programme under Swedish governing law, listed on Nasdaq Stockholm.

The Swedish company has issued a senior unsecured green bond, giving investors the opportunity to support the transformation of the energy system and the company’s vision of a fossil-free future. The proceeds from the bond issue are earmarked for projects defined in Vattenfall’s green bond framework, with four categories: renewable energy and related infrastructure, energy efficiency, electrification of transport and heat, and industrial projects. The framework has been reviewed by Cicero and given their highest rating, “Dark Green”. Citi Bank, Deutsche Bank, Nordea and SEB acted as joint book-runners on the bond issue.

Vattenfall’s CFO Anna Borg commented on the excellent demand for the bond, ”We have seen very strong interest in our first green bond, among European investors. I am happy that so many investors have chosen to participate in our bond offer, and chosen to contribute to our vision of a fossil-free life within one generation.”  

Recently, Vattenfall and GE Renewable Energy announced their plan to join forces in the deployment of GE’s new wind turbine, the Haliade-X in Europe. With a capacity of 12MW, it is the largest offshore wind turbine on the market to date. Development and production of the new 12MW turbine.  It features a 220-meter rotor, a 107-meter blade (the longest ever manufactured). With the largest capacity factor in the industry, one Haliade-X turbine can generate 67 GWh annually, enough clean energy to supply 16,000 European households for one year.

In May, the Swedish state-owned power company signed a long-term purchasing agreement for renewable electricity from the new upgraded Zeewolde wind farm in the Netherlands.