RWE Raises €1 Billion Through Oversubscribed Green Hybrid Bond Issuance
- Strong market reception: The bond was more than 10x oversubscribed, with a €10.5 billion order book.
- Sustainable financing: Proceeds will fund green projects aligned with RWE’s Green Financing Framework.
- Capital structure boost: Moody’s and Fitch classify the hybrid bond as 50% equity, strengthening RWE’s balance sheet.
RWE has returned to the hybrid bond market for the first time since 2015, successfully issuing a €1 billion green hybrid bond to support its renewable investment strategy.
Split into two €500 million tranches, the issuance featured strong investor demand. The first tranche carries a 4.125% annual coupon and a 5.25-year first call date; the second offers a 4.625% coupon with an 8-year first call. Yields to maturity are 4.2% and 4.7%, respectively.
“The placement was met with very strong investor interest,” RWE reported, with the order book exceeding €10.5 billion—more than ten times the offer size.
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Proceeds will be allocated to sustainable projects under RWE’s Green Financing Framework, reinforcing the company’s strategic focus on clean energy.
The hybrid structure also improves RWE’s capital profile. Both Moody’s and Fitch have assigned 50% equity credit to the bond, which carries ratings of Baa3 and BBB-, respectively.
By re-engaging with the hybrid bond market, RWE adds flexibility to its capital strategy while deepening its commitment to green financing.
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