By Susanna Moon
Chicago, March 17 Engie SA said it issued 1.5 billion of green bonds in two tranches.
The issue consists of 700 million 0.875% seven-year bonds and 800 million of 1.5% 11-year bonds.
Engie issued the green bonds to support its ambitious development strategy in renewable energies and energy efficiency, according to a company announcement.
The company also is tendering for 700 million of outstanding bonds through March 23, and the transactions will allow the group to reduce the average cost of its debt while extending the duration.
The average coupon for the new issue was 1.2% with an average duration of 9.1 years, the company noted.
Proceeds will be used to finance renewable energy projects such as wind and solar farms, hydroelectric plants, energy efficiency projects and natural resources preservation projects. The proceeds will be allocated using a specific traceability procedure verified by an external audit firm.
Engie, formerly GDF Suez SA, is a Courbevoie, France-based natural gas and electricity supplier.
Issuer: | Engie SA
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Issue: | Green bonds
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Amount: | 1.5 billion
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Announcement date: | March 17
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Seven-year bonds
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Amount: | 700 million
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Maturity: | Seven years
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Coupon: | 0.875%
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11-year bonds
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Amount: | 800 million
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Maturity: | 11 years
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Coupon: | 1.5%
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