Engie Hits Green Bond Record
French energy giant Engie has become the biggest issuer of green hybrid bonds, placing January 10 a €1bn ($1.2bn) bond at the lowest coupon rate yet for a corporate issuer of hybrids, of 1.375% for 5.25 years. It replaces two earlier bonds in euros and sterling totalling roughly the same amount that would have expired by 2019, but with higher coupons that average about 4.2%.
The proceeds will be allocated to Engie's renewable energy and energy efficiency projects, natural resources preservation projects, as well as research and development investments in such areas, it said January 11. The Green Format of the bond reaffirms the strong commitment of Engie to its sustainable growth strategy, it added. Engie has now issued €6.25bn worth of green bonds, and was part of a group that last December urged industry to strengthen the green bond market.