ESB Issues Ireland’s First Corporate Public Green Bond

Thursday June 6th, 2019

ESB has successfully placed a €500 million 1.125% fixed-rate green bond maturing in June 2030.Government Oppotunities

The bond is the first ever Irish corporate public green bond with the net proceeds from the transaction being allocated to finance eligible green projects, including renewable energy generation, network connections for onshore wind farms and electric vehicle charging infrastructure. The transaction was executed after an extensive European roadshow involving more than 100 leading investors.

The bond is being purchased primarily by European institutional investors with orders received of over €4 billion. This enabled ESB to price the bond at 1.125%, ESB’s lowest ever coupon for a senior bond, with strong participation of socially responsible investors from different countries demonstrating confidence in ESB’s investment programme.

ESB’s Green Bond Framework, under which the green bond was issued, has been reviewed by Sustainalytics in terms of its alignment with relevant industry standards (the International Capital Market Association’s Green Bond Principles). In issuing their “Second Party Opinion”, Sustainalyitics is of the view that the ESB Green Bond Framework is “credible and impactful and aligns with the four core components of the Green Bond Principles 2018”.

ESB’s Group Finance Director Pat Fenlon said:

Today ESB issued Ireland’s first corporate public green bond for €500m, the proceeds from which will be used to finance projects which will facilitate the transition to a low carbon energy future and help Ireland to meet its ambitious climate change targets, including having 70% of electricity produced from renewable sources by 2030. The interest shown by investors from right across Europe in this our first green bond demonstrates confidence in ESB’s investment programme to lead the transition to a low carbon energy future.

“In line with our Brighter Future 2030 strategy, ESB continues to focus on producing clean, secure and affordable energy, delivering smart, reliable, resilient networks to enable the connection of more renewable generation and developing energy services to meet evolving market needs. We are developing a pipeline of projects across a range of technologies including onshore and offshore wind and solar as well as investing in the electric vehicle charging infrastructure. These significant investments will position ESB as a leader in the transition to a low-carbon energy future. Green Bonds are an effective tool for investors to channel funds into assets and projects which have a positive and demonstrable climate change impact.”

The placement was managed by Danske Bank, JP Morgan, BBVA and Société Générale.

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