In a statement released by the Portuguese Securities Market Commission (CMVM), EDP announced it has set the price for issuing subordinated green debt instruments in a ‘fixed to reset rate’ hybrid format. The total amount is 750 million euros, with an early redemption option by EDP 6.5 years after the issuance date, and a maturity date in May 2055.
This issuance carries a yield of 4.625% (with an annual coupon of 4.5%), applicable until the first reset date, which is 6.75 years post-issuance.
EDP stated that the aim of this issuance is to replace presently circulating ‘green’ subordinated debt instruments with a ‘fixed to reset rate’ amounting to 750 million euros, which have an early redemption option available from May 2026.
The company noted that it had already secured a seven-year Mid Swap risk cover for amounts to be refinanced in 2025, at a cost of 2.3%.
According to the group, these instruments will be issued under the “Programme for the Issuance of Debt Instruments” of EDP Finance B.V. and EDP Servicios Financieros España, S.A.U., and a request for listing on Euronext Dublin will be submitted.
EDP further indicated that the net proceeds from this issuance will be used to finance or refinance its portfolio of eligible ‘Green’ projects.
