RWE Issues $2 Billion Green Bond in U.S. to Fund Clean Energy Buildout
Germany-based power producer RWE announced the completion of its inaugural U.S. green bond issuance, raising $2 billion to be used to finance renewable energy projects. The offering included $1 billion 10-year, and $1 billion 30-year tranches, and was RWE’s first green bond issuance outside of Europe.
According to RWE’s Green Financing Framework, eligible use of proceeds from the company’s green bond offerings may be used for investments in renewable energy generation and storage, as well as for hydrogen production and storage.
The company said that it plans to use the net proceeds for its ‘Growing Green’ investment and growth program, with RWE recently announcing plans to invest €55 billion worldwide by 2030 in renewable energy, batteries, flexible generation and hydrogen projects, including over half earmarked for Europe, and around €20 billion anticipated to be invested in the U.S. The company intends to expand its green portfolio globally to more than 65 gigawatts through the end of the decade.
RWE also said that it plans to issue 3.0-3.5 billion of bonds per year on average through to 2030 in both euros and U.S. dollars.
The issuance was met with strong interest and the order book was 3.8 times oversubscribed at $7.6 billion.
Michael Müller, CFO of RWE, said:
“With our first US green bond, we are expanding our sustainable financing. Going forward, we plan to be a regular issuer in both Euro and US markets. The US stands as our largest market outside of Europe where we have more than doubled our net installed capacity since 2020 to 9 gigawatts today. As one of the leading renewable energy companies in the US, we want to further expand our market position in onshore and offshore wind as well as in solar and batteries with investments of about €20 billion by the end of this decade.”