Duke Energy Carolinas, a subsidiary of Duke Energy, has completed the issuance of $1bn green bond that will finance eligible green energy projects.
These projects will include zero-carbon solar and energy storage – in North and South Carolina. This represents one of the largest green bond transactions issued by a utility.
Duke Energy executive vice president and chief financial officer Steve Young said: “Today marks a milestone for our company and demonstrates our continued commitment to generating cleaner energy for our customers and communities.
“We are proud to provide this option for investors to advance our goal of reducing carbon emissions by 40% by 2030.”
Duke Energy Carolinas has significantly improved its environmental impact over the past decade, retiring older coal-generating plants, increasing nuclear generation capacity and adding approximately 650MW of built or purchased solar capacity. The company anticipates adding 1.8GW of built and purchased solar capacity over the next five years.
The green bonds, with a weighted average coupon of 3.74% between the three-year and 10-year maturities, will ensure the company’s renewable energy projects continue to be financed on attractive terms to serve Carolinas customers.
The company priced the green bonds on 5 November and closed the transaction on 8 November.
Young said: “Similar to Duke Energy, investors are increasingly interested in clean and renewable energy and now we can partner together to transform our energy future in the Carolinas.”
Source: Company Press Release