Energy company E.ON issues 1.5 billion euros in green bonds on the capital market

Energy company E.ON issues 1.5 billion euros in green bonds on the capital market

According to a report by finanzen.net, the energy company E.ON has issued two green bonds with a total volume of 1.5 billion euros. One tranche for 750 million euros has a term until January 2031 and a coupon of 3.375 percent, while the other tranche with the same volume and a term until January 2036 carries interest at 3.750 percent.

Investor demand was high, with a combined order book volume of over €4.6 billion. The proceeds from the green bonds are intended to finance and/or refinance green projects. CFO Marc Spieker emphasized that the new green bonds enable E.ON to finance sustainable projects to further decarbonize the power grid infrastructure.

The E.ON share ultimately rose by 1.91 percent to 12.79 euros in XETRA trading.

The issuance of green bonds by major energy companies such as E.ON is an example of the increased focus on sustainable sources of financing in the economy. By issuing green bonds, companies can raise capital for environmental projects while attracting interest from environmentally conscious investors.

This measure could also strengthen E.ON's market position and consolidate the company's image as an environmentally conscious player in the energy industry. It can also have a positive impact on consumers, as financing green projects can lead to a more environmentally friendly energy supply in the long term. Overall, the issuance of green bonds shows an increased commitment by companies like E.ON to environmental protection and sustainable development.