Redeia issues EUR-500m green bond for Spain's power grid modernisation

Spanish corporate group Redeia Corporacion SA (BME:RED) issued a EUR-500-million (USD 534.9m) green bond on Thursday to raise funds for the transmission grid development and energy transition in Spain.

The eight-year green notes have an annual coupon of 3.375% and an issuance price of 99.428%, representing a yield of 3.458%. The issuance attracted investors such as the European Investment Bank (EIB) and Spanish lender Instituto de Credito Oficial (ICO), Redeia said.

The proceeds will be used to finance and/or refinance eligible green projects of Redeia’s subsidiary, Red Electrica de Espana (REE), which operates Spain’s power grid.

Redeia said that REE has made good progress in implementing the current transmission grid plan. Approved by the Spanish government and binding for REE, the EUR-6.96-billion plan for the 2021-2026 period will channel investments into preparing the grid to integrate more renewables and building interconnections with Spain’s non-mainland territories and the neighbouring countries -- France, Morocco, Portugal and Andorra.

(EUR 1.0 = USD 1.07)

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