ESB Raises €500 Million in Inaugural European Green Bond

Irish utility ESB raised €500 million through its inaugural European Green Bond on 22 September, becoming the first Irish corporate to issue under the European Green Bond Regulation and marking the company's fourth green bond overall. The 10-year bond carries a coupon of 4.375%, with proceeds directed toward projects that decarbonise Ireland's energy system, supporting ESB's target of reaching net zero carbon emissions by 2040. The issuance follows ESB's updated Green Finance Framework and European Green Bond Factsheet, published in August, which set out how the company manages and allocates green financing proceeds.

 

Eligible investments under the framework span electricity transmission and distribution infrastructure, renewable electricity generation and battery energy storage systems. Moody's Ratings independently assessed the framework and assigned it the agency's highest sustainability quality score of "Excellent," while also completing a pre-issuance review of the accompanying factsheet. ESB has outlined plans to invest approximately €20 billion by 2030 to expand an electricity system capable of supporting housing growth, economic expansion and technological change, in line with the government's National Development Plan.

 

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BBVA Corporate & Investment Banking and ING acted as joint sustainability coordinators, supporting ESB in developing the updated framework and factsheet ahead of the sale. BBVA, Goodbody, ING, MUFG and Société Générale served as joint bookrunners on the transaction. The deal builds on ESB's existing green bond programme and represents its first issuance under the newer European Green Bond Regulation, a standard designed to give investors a more standardised basis for assessing green-labelled debt across the EU.

 

"The successful completion of ESB's inaugural European Green Bond is an important milestone in the evolution of our sustainable finance programme," said Anne Marie Kean, ESB Group Treasurer. "The strong investor support received reflects confidence in ESB's strategy and our significant investment programme to modernise and expand Ireland's electricity infrastructure. It also indicates the value that investors put on having a clear and transparent basis for supporting this journey."

 

Source: ESB