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REN’s first green bond issue with a demand five times the issued amount

 
REN - Redes Energéticas Nacionais, in its first green bond issue, placed an amount of 300 million euros, maturing in eight years and with an interest rate of 0.5%, equivalent to the mid swap plus 60 basis points. Demand for the bond was very high, covering more than five times the amount to be issued.
 
"We were happy to have made our first green issue and thus align our financial and sustainability strategies," said Gonçalo Morais Soares, CFO of REN. "As for the results, they once again demonstrate REN's attractiveness in the capital markets, as a safe investment with predictable profitability," he added.
 
In geographical terms, demand came essentially from Germany and France, with Portuguese investors accounting for the third largest group of interested parties. In the total issue, more than 60% of the investors are of green origin.   
 
The group of banks responsible for the placement was made up of BBVA, CaixaBI, ING, J.P. Morgan, Millennium BCP, Santander and SMBC, all acting as joint bookrunners. ING also played the role of "Green Structuring Bank" for the advisory services provided to REN in the preparation of its "Green Finance Framework" published last February. 
 
This green bond issue was part of REN's regular financing policy, maintaining its profile as a solid, low-risk company, without changing its conservative financial policy which aims to consolidate an Investment Grade credit profile. REN has a BBB rating attributed by Fitch and Standard & Poor's and Baa3 by Moody's.
 
REN's inaugural green issue thus naturally followed on from the recent establishment of its "Green Finance Framework". This first green bond issue by REN reflects the alignment of the company's financial strategy with the company's sustainability strategy, based on the 17 Sustainable Development Goals (SDGs) created in 2015 by the United Nations, and demonstrates the company's commitment to environmental, social and governance issues.
 
The issue comes two months after the company was certified by Institutional Shareholder Services (ISS-ESG) with the Prime rating, considering that the company makes a "significant contribution to the achievement of sustainable development goals".