Siemens Energy Issues Its First Green Bond Worth €1.5 Billion

Siemens Energy, an energy technology company, reported the successful placement of its first green bond, raising €1.5 billion. The offering, which consisted of two €750 million tranches with terms of three and six years, was more than three times oversubscribed, with a total order book of around €5.5 billion.

Siemens Energy recently published its Green Bond Framework, which outlines eligible uses of proceeds, project selection and evaluation procedures, proceeds administration, and reporting obligations for green bond issuances.

Renewable Energy was designated as the only eligible category for the use of proceeds in the framework, with eligibility limited to expenditures related to "the design, development, manufacturing, and installation of onshore and offshore wind turbines" and "the operation and maintenance of onshore and offshore wind farms."

The proceeds will be used mainly to refinance the existing debt of Siemens Gamesa Renewable Energy, the company said.

Siemens Energy's CFO, Maria Ferraro, stated:

"ESG is central to our strategy, and it is reflected in our financing actions." Increasing the sustainability of our own portfolio and activities will result in profitable growth. I am very happy to see that the capital markets are confident in our strategy to become the leader in the energy transition with the successful issuance of our first bond that fits our Green Bond Framework."