Duke Energy Utility Issues Historic $1 Billion Green Bond Offering
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Duke Energy Carolinas, a subsidiary of Duke Energy, has completed its inaugural issuance of $1 billion in green bonds that will finance eligible green energy projects - including zero-carbon solar and energy storage - in North and South Carolina. This represents one of the largest green bond transactions issued by a utility.
"Today marks a milestone for our company and demonstrates our continued commitment to generating cleaner energy for our customers and communities," said Duke Energy executive vice president and chief financial officer Steve Young. "We are proud to provide this option for investors to advance our goal of reducing carbon emissions by 40 percent 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 650 megawatts (MW) of built or purchased solar capacity. The company anticipates adding 1,800 MW of built and purchased solar capacity over the next five years.
The green bonds, with a weighted average coupon of 3.74 percent 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 Nov. 5 and closed the transaction on Nov. 8.
"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," commented Young.
Headquartered in Charlotte, N.C., Duke Energy is one of the largest energy holding companies in the U.S., with approximately 29,000 employees and a generating capacity of 49,500 megawatts. The company is transforming its customers' experience, modernizing its energy grid, generating cleaner energy and expanding its natural gas infrastructure to create a smarter energy future for the people and communities it serves.
The company's Electric Utilities and Infrastructure unit serves approximately 7.6 million retail electric customers in six states - North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. Its Gas Utilities and Infrastructure unit distributes natural gas to approximately 1.6 million customers in five states - North Carolina, South Carolina, Tennessee, Ohio and Kentucky. Its Commercial Renewables unit operates a growing renewable energy portfolio across the U.S.
A Fortune 125 company, Duke Energy was named to Fortune's 2018 "World's Most Admired Companies" list and Forbes' 2018 "America's Best Employers" list.