Duke Energy pockets USD 1bn from green bond sale

November 12 (Renewables Now) – US utility Duke Energy (NYSE:DUK) has raised USD 1 billion (EUR 884m) from its first green bond issuance that will help it fund solar and energy storage projects in North and South Carolina.

The new projects that will benefit from the financing will support the utillity’s goal of expanding its portfolio with an additional 1,800 MW of built and purchased solar power capacity over the next five years. Among Duke Energy’s goals is also cutting its carbon dioxide (CO2) emissions by 40% by 2030.

The green bond offering was issued by Duke Energy Carolinas and is one of the largest such transactions launched by a utility, Duke Energy said on Friday. The financial instruments have a weighted average coupon of 3.74% between the three-year and 10-year maturities. Apart from supporting solar and energy storage schemes, funds from the placement will go for other renewable energy projects, as well.

"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," said executive vice president and chief financial officer Steve Young.

As part of its environmental initiatives in the past 10 years, Duke Energy Carolinas has retired older coal-fired power generation capacity and added around 650 MW of built or purchased solar capacity.

(USD 1.0 = EUR 0.884)