Vattenfall issues SEK3.5bn in green hybrid bonds

Vattenfall has successfully priced and settled SEK3.5 billion of green fixed and floating hybrid bonds. The proceeds will finance investments that contributes to Vattenfall’s goal of enabling fossil-free living within one generation. 

Vattenfall has also repurchased SEK2.8 billion of the outstanding SEK6 billion hybrid bonds.

This is Vattenfall’s first hybrid capital under the Green Bond Framework, published in 2019, where proceeds from the bonds are earmarked for investments in the following four eligible categories: renewable energy and related infrastructure, energy efficiency, electrification of transport and heat, as well as industrial projects.

Vattenfall's CFO Kerstin Ahlfont comments: “I am pleased that our first SEK-denominated green transaction engaged so many Nordic investors that will now join Vattenfall in driving the energy transition forward.”

Green hybrid capital supports Vattenfall’s solid investment grade rating, reinforces the company’s sustainability commitment and provides cost efficient equity-like capital. In addition, the repurchase of SEK 2.8 billion in the tender offer further strengthens the balance sheet by replacing shorter dated hybrid bonds with longer dated notes.