Engie issues $1.5bn green bond to finance renewable push
Engie has raised $1.5bn through the issue of its third green bond in order to finance its "ambitious development strategy in renewable energies and energy efficiency". The proceeds will be used to fund its R&D efforts as the company looks to provide 25% of its energy generation using renewables by 2020, up from 18% in 2015. The offering was made up of a EUR500m five-year note with a coupon of 0.375%, and a EUR750m 11-year bond that pays 1.375%.
French energy group Engie (EPA:ENGI) said today it has issued a EUR-1.25-billion (USD 1.5bn) green bond "to support its ambitious development strategy in renewable energies and energy efficiency".

This is the company's third green bond, bringing its total green bond issuance since 2014 to EUR 5.25 billion. Proceeds from the latest bond will be used to finance renewable energy, energy efficiency and natural resources preservation projects, as well as research and development (R&D) in these areas and equity investments in projects of Engie's social impact fund Rassembleurs d'Energies.

Engie has a target of a 25% share of renewables in its energy generation portfolio by 2020, up from 18% in 2015.

The green bond was issued yesterday and consisted of two tranches -- EUR 500 million with a duration of five years and five months and an annual coupon of 0.375%, and an eleven-year-five-month tranche of EUR 750 million with a 1.375% annual coupon. In addition, the company issued a 20-year, EUR-750-million bond for general purposes. It said it is taking advantage of the current favourable rate environment to lengthen the duration of its debt at attractive terms.

(EUR 1 = USD 1.200)

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