Sweden-based energy firm Vattenfall issues €287.1M hybrid bond to fund green initiatives

Stockholm-based Vattenfall, an energy company, announced on Wednesday, May 10, that it has successfully issued a £250M (approximately €287.14M) green fixed-rate hybrid bond to fund green initiatives, including renewable energy.

According to the company, the issue was almost three times oversubscribed.

This is Vattenfall’s first hybrid bond issued since June 2021 and has a maturity of 60.25 years with the first reset date after 5.25 years. Over £700M worth of orders were placed for the deal. The coupon is worth 6.875 per cent. 

Under the Green Financing Framework dated May 2022, the proceeds are designated for investments in the four qualified categories including renewable energy, electricity transmission and distribution, energy efficiency, and clean mobility.

“The success of our first green hybrid bond since June 2021 once again underlines the broad-based support Vattenfall receives from investors to drive the energy transition forward,” says Maria Paulinz, Head of Treasury at Vattenfall.

About Vattenfall

Founded in 1909, Vattenfall claims to be one of Europe’s largest producers and retailers of electricity and heat. Its aim is to enable fossil-free living within one generation.

The company’s main markets are Sweden, Germany, the Netherlands, Denmark, and the UK.

Vattenfall AB, the parent company, is 100 per cent owned by the Swedish state, and its headquarters are in Solna, Sweden. The Vattenfall Group employs nearly 20,000 people.

Earlier this month, Vattenfall announced its partnership with a British model, actor, and climate activist, Cara Delevingne, to promote the possibilities of hydrogen power technology. Using water collected from fossil-free, hydrogen-powered steel production, Vattenfall and the British model launched a new face mist.

The Swedish energy company claims that fossil-free hydrogen creates water that is so pure you can wash your face with it, in addition to having the ability to reduce carbon from heavy industries.

Vattenfall says, “It’s a 50ml bottle of systemic change, refreshing everyone’s view on emissions. It’s not for sale. However, you can get your hands on a free sample in one of our limited-edition drops so you can experience the beauty of fossil-free hydrogen for yourself.”