Global energy giant EDF has achieved a milestone in sustainable finance, raising 325 million Swiss francs through a senior multi-tranche green bond issuance. The transaction, completed on August 21, 2023, consisted of two tranches:
- A CHF 200 million bond with a 4-year maturity period and a fixed coupon rate of 2.30%.
- A CHF 125 million bond with an 8-year maturity period and a fixed coupon rate of 2.55%.
The proceeds from the green bonds will be earmarked for financing and/or refinancing electricity distribution investments, particularly aimed at modernizing the grid to align with the requirements of the energy transition. This initiative aligns with EDF’s established Green Financing Framework, unveiled in July 2022, which outlines the company’s commitment to sustainable practices.
Beyond its environmental impact, the bond issuance serves the dual purpose of enhancing EDF’s balance sheet structure and facilitating the refinancing of forthcoming maturities. Moreover, the transaction broadens the company’s investor base, fostering a more diversified and resilient financial ecosystem.
EDF’s successful venture into green bonds underscores its dedication to sustainable finance and its pivotal role in the ongoing global energy transformation.