RWE Issues $2 Billion Green Bond To Fund RE Projects

• Germany's RWE has placed its maiden US dollar green bond, its 1st outside of Europe 
• The $2 billion bond in 2x$1 billion tranches was oversubscribed by 3.8 times 
• The company plans to invest the proceeds into financing its renewable energy projects 

German energy giant RWE has successfully placed its maiden US dollar green bond with a total volume of $2 billion to finance its renewable energy projects under the company's Green Financing Framework. It is the group's 1st green bond placement outside of Europe. 

It marks the company's 'strategically important' entry into the US bond market and a significant step into US debt financing. 

Issued in 2 tranches of $1 billion each, these bonds come with 10-year and 30-year tenor, respectively. RWE says the issuance saw strong interest from investors as the order book was oversubscribed 3.8 times at $7.6 billion.

The management shared that the net proceeds from this issue will be used for its Growing Green investment and growth program. 

RWE calls the US its largest non-European market. It operates 9 GW of renewable energy capacity in this market and plans to expand it further with onshore and offshore wind as well as solar and batteries. The group will invest close to $20 billion in this market by the end of 2030. 

Globally, RWE targets to invest €55 billion net in renewable energies, batteries, flexible generation and hydrogen projects to expand its total green portfolio to over 65 GW by 2030. It has already invested €20 billion on these technologies between 2021 and 2023. 

RWE CFO Michael Müller said, "With our first US green bond, we are expanding our sustainable financing. Going forward, we plan to be a regular issuer in both Euro and US markets."