Germany’s EnBW in €500m bond issue

Germany’s Energie Baden-Württemberg AG (EnBW) said it issued a senior bond with a principal amount of €500 million.

The bond issue has a 10-year term to maturity and a coupon of 0.250%.

“Thanks to significant demand – the bond was oversubscribed 4 times – EnBW was able to obtain attractive terms,” said EnBW.

“This is EnBW’s third issue in the current financial year, following a €500 million senior bond at the beginning of April and a €500 million green subordinated bond in mid-June.”

EnBW aims to be climate-neutral by 2035

The banking syndicate consisted of BNP Paribas and NatWest Markets as joint global coordinators and DZ BANK, Helaba and MUFG as additional joint bookrunners.

“EnBW has invested heavily in the expansion of renewable energy and grids in recent years,” added the company.

“In the next phase, the company will develop into a sustainable infrastructure partner, including for sectors beyond energy.

“Up to around €12 billion is to be invested by 2025 in further expanding the established businesses of renewables, electricity grids, electric mobility and also broadband, as well as in the expansion of new business areas.

“As it does so, EnBW also plans significant earnings growth to €3.2 billion by the end of 2025.”

EnBW CFO Thomas Kusterer said: “As a result of the portfolio transformation over the last few years, EnBW now has a robust business model with stable cash flows in its operating business.

“We also firmly believe that a sustainability strategy that is consistently embedded in the corporate strategy leads to better access to the capital markets, and thus enables a company to finance itself at lower cost overall.”