20 February 2024

REN issues green bonds with demand seven times higher than supply

REN – Redes Energéticas Nacionais has issued green bonds, amounting to 300 million euros, maturing in 8 years, and with an interest rate of 3.614%, equivalent to the mid-swap rate plus 90 basis points. The demand for the bond reached approximately 2,050 billion euros, covering the issuance amount by around 7 times.

"These results demonstrate a growing interest from investors in debt securities linked to the sustainability performance of companies, indicating that they consider REN's contribution in this field to be significant. This was REN's second green bond issuance and, just like the first, demand exceeded supply significantly, reinforcing the conservative financing profile for which we are recognised", stated Gonçalo Morais Soares, REN’s CFO.

From a geographical perspective, demand primarily came from Germany, France, Portugal, and the United Kingdom. The issuance also saw strong participation from green investors.

This issuance of green bonds aligns with REN's regular financing policy, maintaining the profile of a solid and low-risk company, without altering its conservative financial policy aimed at consolidating an Investment Grade credit profile. The choice of this type of instrument reflects the alignment of the company's financial strategy with its sustainability strategy, based on the 17 Sustainable Development Goals (SDGs) established by the United Nations in 2015. It demonstrates the company's commitment to environmental, social, and governance issues.

REN holds a BBB rating from both Fitch and Standard & Poor’s, and a Baa2 rating from Moody’s.