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EDP steps up renewable energy

29/10/2019

Energias de Portugal Group (EDP), Portugal’s largest utility provider, reaffirmed its commitment to the environment with the issuance, last September, of its third green bond in a row.

The company, one of the largest energy operators in the Iberian Peninsula, seduced the market with a new 600 million euro 7- year green bond whose proceeds will be used to finance or refinance renewable energy production projects as defined in EDP’s Green Bond Framework.  EDP is committed to the transition to a more environmentally friendly economy and believes green bonds are an important tool to encourage the transformation to a low-carbon economy, giving financial backing to existing projects or new ones aimed at bringing about this change.

Our commitment to renewable production is enshrined in our vision to help build a society capable of reducing CO2 emissions, by replacing thermal with renewable production, decentralising generation and electrifying transportation,

explains the company in its green bond framework.

EDP has incorporated Sustainable Development Goals into its strategy and this third green bond clearly reflects EDP’s commitment. The issuance, whose proceeds will be used to finance or refinance renewable energy production projects such as wind power plants and solar power plants, reached the lowest cupon (0.375%) ever paid by a Portuguese Corporate in a Euro bond transaction. 

EDP launched its first green bond in October 2018 and the good market response has allowed the company to continue endorsing this financing strategy. The Eur 600 million obtained in 2018 with a 7-year bond were also aimed at financing or refinancing a portfolio of green eligible projects. The issuance of a Eur 1 bn hybrid green bond last January and the third green bond launched this past September reaffirm the company’s commitment and have allowed EDP to become the only Portuguese corporate to access the Euro public bond market in 2019. 

Societe Generale played an important role in this successful bond issuance for EDP and acted as joint bookrunner of the operation.

We are proud to be able to contribute to this success story for our client and the environment. We fully support positive impact finance

Fernando García,
Head of DCM for Iberia