Southern Company electric subsidiary Georgia Power announced the issuance of a sustainability bond, marking a first for a U.S. domestic utility company. The company stated that the bond’s 3.25% coupon represents the lowest 30-year coupon for a publicly-traded bond ever issued by any affiliate of Southern Company.

Net proceeds from the offering are approximately $742 million. According to the company, proceeds will be allocated to fund the company’s environmental, renewable, and social initiatives, including Georgia Power’s spending with diverse and small business suppliers and its investments in renewable energy projects. Eligible uses of proceeds are outlined in Southern Company’s recently published sustainable financing framework.

Dan Tucker, Executive Vice President, Chief Financial Officer, and Treasurer for Georgia Power, said:

“The sustainability bond issued today is aligned with our ongoing commitment to building a clean and sustainable energy future for Georgia Power customers and the state. By allocating the proceeds of this bond to fund our social, environmental and renewable initiatives, the company is able to secure benefits for all customers that will last for up to 30 years by way of long-term, low-cost financing.”