Siemens Energy to refinance Siemens Gamesa debt with $1.6 billion green bond

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Siemens Energy AG has placed its first so-called green bond, raising 1.5 billion euros ($1.63 billion) that will be used to refinance existing debt of its wind-turbine unit Siemens Gamesa Renewable Energy.

The German energy-technology company
ENR,
+2.22%
said late Wednesday that the bond has two tranches of EUR750 million each–one matures in three years and has a coupon of 4% and the second has a maturity of six years with an annual coupon of 4.25%.

Proceeds from the bond issue–which can only be used for projects that meet environmental, social and governance criteria–may also be used to refinance the acquisition of outstanding shares of Siemens Gamesa, Siemens Energy said. Siemens Energy holds a 97.79% stake in Siemens Gamesa, it said.

Siemens Energy said the total order book for the bond was around EUR5.5 billion.

Write to Adria Calatayud at [email protected]

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