EDF Raises €1.25B for Green Hybrid Bond to Extend Nuclear Fleet
EDF, a leading French utility, has secured €1.25 billion through a green hybrid bond, demonstrating how utilities are merging financial strategies with sustainable objectives, aligning with national energy policies.
The bond, with a 4.375% coupon until 2031, extends the lifespan of France's nuclear fleet. EDF positions this issuance as both a financial and strategic move, promoting energy sovereignty and transition. It's set to settle on October 6 on Euronext Paris.
The bond's classification under EDF's Green Financing Framework adheres to Europe's taxonomy rules, classifying nuclear as sustainable under stringent criteria. It carries provisional ratings of B+ from S&P, Ba1 from Moody's, and BBB- from Fitch, with 50% equity content treatment. The first call date is in 5.5 years. EDF's latest hybrid bond offers a blueprint for other issuers balancing substantial capital needs with climate pledges, providing a glimpse into Europe's evolving energy transition finance.
EDF's €1.25 billion green hybrid bond, priced at 4.375% until 2031, supports France's nuclear fleet with emissions at 4 gCO2/kWh. This deal illustrates utilities' alignment of large-scale infrastructure with sustainable finance standards, while advancing national energy security agendas.
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