Siemens Energy successfully placed its first-ever Green Bond with a nominal value of EUR 1.5 billion today, an important step in the company’s efforts toward integrating sustainability more and more into every aspect of its business.

The Green Bond has two tranches: a EUR 750 million tranche at a fixed rate, with a maturity of 3 years, with an annual coupon of 4%, and a EUR 750 million tranche at a fixed rate with a maturity of 6 years, with an annual coupon of 4.25%. The total order book across the two tranches was approximately EUR 5.5 billion.

Proceeds from the Green Bond placement can only be used for projects and activities that meet eligible Environmental, Social and Governance (ESG) criteria. Siemens Energy will use the proceeds from the bond to re-finance existing debt of Siemens Gamesa Renewable Energy (SGRE), a key player in the wind-power business in which Siemens Energy holds a 97.79% majority stake. Portions of the net proceeds may also be used to refinance the acquisition of outstanding shares of Siemens Gamesa by Siemens Energy.