EDP increases green bond issuance to 750 million. Interest rate around 1.8%
EDP has revised upwards the value of the green bond issue: it intends to finance 750 million euros. Demand already exceeds 5.5 billion.
EDP has an ongoing seven-year green bond issue. The amount of the operation has already been revised upwards: from 500 million euros to 750 million euros, because of strong market demand. Orders reached over 5.5 billion euros, according to the specialised IFR website. This is the second operation of its kind, carried out this year by the electric company led by António Mexia.
The initial spread of the issue was set at 230 basis points (2.3%), but this figure has already dropped by 40 basis points to 190 points (1.9%), reflecting strong investor interest. Based on this spread, the final rate should be around 1.8%, also taking into account that the euro midswap rate at the same maturity of the issue is at -0.10%.
The operation is being co-led by Caixa BI, with the help of Barclays, BBVA, Bank of America, Citi, Commerzbank, HSBC, ICBC, ING, JP Morgan, Societé Generale.
In January, EDP raised 750 million euros through another green bond issue. The Portuguese company paid an interest rate of 1.75% for securities with maturity of 2080 (60.5 years).