Engie issues €1.5 billion green bond, eyes Belgian residential PV segment

French electric utility company Engie announced it has issued its second Green Bond, worth €1.5 billion ($1.61 billion). The company said the bond will support its recent expansion in the renewable energy and energy efficiency sectors.

The bond is structured in two tranches, a 7-year tranche of €700 million with a 0.875% annual coupon, and a 11-year tranche of €800 million with a 1.5% annual coupon.

Engie said it will use proceeds from the bond to finance wind and solar farms, hydroelectric plants, energy efficiency projects and natural resource preservation projects.

The first green bond worth €2.5 billion was issued by Engie in May 2014. At the time, solar was not mentioned as an option, as the company said it intended to use the funds for renewable energy projects such as wind farms and hydroelectric plants.

Meanwhile, the Ministry of Energy of the Brussels Metropolitan region, Celine Fremault, announced that the company’s subsidiary Engie Sun4business signed a cooperation agreement with Belgium’s Federation of Commerce and Services to promote commercial solar energy solutions among the companies of the sector.

Fremault said that the federation’s member companies offer the potential to deploy an installed rooftop PV capacity between 300 and 350 MW on a total available surface of 350 hectares. Engie will offer services for installation and maintenance of the PV system, with or without a system of third-party investment.

Engie has gradually expanded in the renewable energy sector over the past two years. The most important investment in solar was the acquisition of French solar developer Solairedirect for $222 million in 2015.