It looks like you’re browsing from Netherlands. Click here to switch to the Dutch →
Siemens Energy AG raised €1.5 billion ($1.63 billion) in its first-ever green bond issue, according to Dow Jones Newswires. Siemens Energy AG, the parent company of Siemens Gamesa Renewable Energy, will use the bond to refinance the existing debt of Siemens Gamesa Renewable Energy. The bond has two tranches of €750 million each, with 4% and 4.25% coupons. The bond proceeds may only be used for projects meeting environmental, social, and corporate governance (ESG) criteria and also to fund the acquisition of outstanding shares in Siemens Gamesa Renewable Energy.
The total order book for the bond was around €5.5 billion, indicating strong investor demand for the offering. Siemens Energy aims to become carbon-neutral by 2030 and align with the 2015 Paris Agreement goals.
This news arises in the context of Siemens Gamesa Renewable Energy registering a nearly $1 billion net loss for the last three months of 2022, citing equipment failures and service problems. The company's CEO, Jochen Eickholt, acknowledged equipment failures in both onshore and offshore wind turbines that led to higher warranty provisions.
Despite the losses, Eickholt announced the reopening of two US-based manufacturing facilities in anticipation of an uptick in demand for wind power equipment. He said, ‘The negative development in our service business underscores that we have much work ahead of us to stabilise our business and return to profitability.’ The company is expected to be delisted and incorporated into parent Siemens Energy.
Green bonds are a growing financial instrument in the market. They can prove to be vital in achieving net-zero goals and securing stable, transparent, and beneficial investments to safeguard nature. DGB Group offers an 8% annual return on green bonds, proving that a healthy return on investment can be achieved in the carbon market. Investing with DGB, means proactively supporting sustainability and environmental projects worldwide whilst growing and diversifying your portfolio.
As DGB Group, our sole purpose is to rebuild trust and serve the public by making the right information available to everyone. By subscribing to our mailing newsletter, you can get the latest tips and trends from DGB Group's expert team in your inbox. Sign up now and never miss the insights.
The price of Australian Carbon Credit Units (ACCUs) is projected to surge by 75% to AUD 70 per tonne..
The European Commission’s 2024 NextGenerationEU (NGEU) Green Bonds Allocation and Impact Report shed..
At COP29 in Baku, Norway unveiled its largest financial commitment yet to the global carbon market: ..
Let's talk about how we can create value together for your sustainability journey.