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ESB has raised €500 million via its inaugural European Green Bond (EuGB), completed on Tuesday, 22 September, advancing the company's sustainable finance programme and underpinning its strategy to achieve Net Zero carbon emissions by 2040.
The 10-year bond carries a coupon of 4.375%. ESB said the proceeds will go to eligible investments that support the decarbonisation of Ireland's energy system, including electricity transmission and distribution infrastructure, renewable generation and battery energy storage systems.
The issuance follows the August publication of ESB's updated Green Finance Framework and a European Green Bond Factsheet, which detail how green financing proceeds will be allocated and managed. The Framework has been independently assessed by Moody's Ratings and received its highest sustainability quality score of "Excellent". Moody's also conducted a pre-issuance review of the Factsheet.
ESB plans to invest approximately €20 billion by 2030 to deliver an electricity system capable of supporting housing growth, economic expansion and technological transformation across society, in line with the Government's National Development Plan.
This transaction is ESB's fourth green bond overall and its first under the European Green Bond Regulation. It is also the first Irish corporate issuance in this format, highlighting the company's ongoing commitment to transparency, credibility and best practice in sustainable finance.
Anne Marie Kean, ESB Group Treasurer, commented: "The successful completion of ESB's inaugural European Green Bond is an important milestone in the evolution of our sustainable finance programme. 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."
BBVA Corporate & Investment Banking and ING acted as Joint Sustainability Coordinators, supporting the development of the updated Green Finance Framework and European Green Bond Factsheet. BBVA, Goodbody, ING, MUFG and Société Générale served as Joint Bookrunners on the issuance.
