Duke Energy Issues $1B Green Bond Offering

The bonds will be used to finance renewable energy projects in the Carolinas. Duke expects to add 1,800 megawatts of built and purchased solar capacity over the next five years.

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 in North and South Carolina. The action marks one of the largest green bond transactions issued by a utility.

Room to grow

Duke Energy Carolinas has lowered its environmental impact over the past decade, retiring older coal-generating plants, increasing nuclear generation capacity and adding some 650 megawatts of built or purchased solar capacity. Furthermore, the company anticipates it will add 1,800 megawatts of built and purchased solar capacity over the next five years.

The green bonds—to be used for zero-carbon solar and energy storage as well—with a weighted average coupon of 3.7 percent between the three-year and 10-year maturities, will ensure the company’s renewable energy projects continue to be financed on attractive terms.

“We are proud to provide this option for investors to advance our goal of reducing carbon emissions by 40 percent by 2030,” Steve Young, executive vice president & CFO of Duke Energy, said in prepared remarks.

Image courtesy of Duke Energy