Duke Energy’s $1 Billion Green Bond Offering

Codewatcher Duke Energy net zero green bonds

Duke Energy Carolinas, a subsidiary of Duke Energy has completed its inaugural issuance of $1 billion in green bonds that will finance eligible green energy projects – including zero-carbon solar and energy storage – in North and South Carolina. This represents one of the largest green bond transactions issued by a utility.

“Today marks a milestone for our company and demonstrates our continued commitment to generating cleaner energy for our customers and communities,” said Duke Energy executive vice president and chief financial officer Steve Young. “We are proud to provide this option for investors to advance our goal of reducing carbon emissions by 40 percent by 2030.”

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Duke Energy Carolinas has significantly improved its environmental impact over the past decade, retiring older coal-generating plants, increasing nuclear generation capacity and adding approximately 650 megawatts (MW) of built or purchased solar capacity. The company anticipates adding 1,800 MW of built and purchased solar capacity over the next five years.

The green bonds, with a weighted average coupon of 3.74 percent between the three-year and 10-year maturities, will ensure the company’s renewable energy projects continue to be financed on attractive terms to serve Carolinas customers.