One of the key energy infrastructure players, Amprion, has placed a green bond of €1.1 billion, securing a significant portion of its liquidity to fund sustainable energy projects. The bond issuance was well received by investors within the €9 billion debt program of Amprion, confirming their trust in the corporation’s commitment to green energy and key issues of sustainability in infrastructure.
The green bonds had a two-tranche structure, in which the strategic moves were taken to meet the different needs of investors. One tranche amounts to €500 million with a coupon rate of 3.125% and is due for maturity in 6 years. The second tranche is worth €600 million with a higher coupon rate of 3.850% and with a maturity period of 15 years. This dual-tranche structure would help to be useful in terms of both short-term and long-term investors, adding more attraction to the bond offering.
This successful issuance was underlined by Peter Rüth, CFO at Amprion, pointing out that it reflects robust investor confidence in the company’s strategic and financial direction. “The positive response to our green bond underlines the investor confidence in our corporate and financing strategy,” said Rüth. He added that the net proceeds from this green bond issue would be used exclusively by Amprion for its green project portfolio pertaining to the expansion and modernization of the transmission grid for the increased integration of renewable energies.
The funds raised through this bond issue will support projects falling under the United Nations’ goals of sustainable development, particularly Goals 7 and 9. These targets demonstrate the commitment of Amprion to growing the sustainable energy infrastructure and promoting the global energy transition for a greener environment. Projects financed under this green bond are mentioned in the Green Finance Framework, drafted by Amprion in adherence to the Green Bond Principles of the International Capital Market Association.
Amprion’s Green Finance Framework was substantiated by a Second-Party Opinion from the ESG rating agency Sustainalytics, thus aligning it with global sustainability standards. This framework-level certification further underpins the credibility of the green bond issuance and the company’s commitment to maintaining high environmental and sustainability standards.
Green bond issuance is supported by credit ratings, which express Amprion’s stability and commitment to sustainability. The respective ratings for the company are Baa1 by Moody’s and BBB+ by Fitch, each with a stable outlook. Consequently, the green dual-tranche bond would be rated Baa1 by Moody’s and A- by Fitch, underpinning its strong financial foundation and positive outlook in the green financing arena.
The transaction was arranged by a pool of top banks acting as joint lead managers for the bond issuance. This includes Bayerische Landesbank, Commerzbank, DZ BANK AG, ING, Landesbank Hessen-Thüringen, Landesbank Baden-Württemberg, SEB, and UniCredit. Their involvement thus underlines not only their commitment to green financing but also demonstrates faith in the strategic vision and financial health of Amprion.
This is a strategic move in terms of the fact that the necessary financing for green energy projects has been secured by Amprion with this successful green bond issuance and positioned it at the forefront of the market in leading sustainable energy infrastructures. Aligning financing activities with global goals of sustainable development, Amprion is likely to become an important vehicle in support of progress toward a low-carbon economy and accelerated penetration of renewable energy sources into the energy grid.
In summary, this placed Amprion at about €1.1 billion, which is a gigantic achievement in its continuous support for Green Energy Projects. Robust investor demand, strong credit ratings, and the harmony of the issue with the global sustainability agenda reflect that the company remains committed to progressing sustainable energy infrastructure and supporting the green transition globally. This constitutes a strategic step toward securing the crucial financing for this future critical infrastructure, but it will also underpin the role that Amprion can play in shaping the future of energy infrastructure in an environmentally sustainable and responsible way.