Duke Energy bonds $600 million to fund eligible renewables projects

Duke Energy Progress, a subsidiary of Duke Energy, has completed its first issuance of $600 million in green bonds that will finance eligible green energy projects, including the development, construction and procurement of solar generation in the Carolinas.

This transaction, which involved two minority-owned banks to place the bonds, marks the second green bond transaction by a Duke Energy utility. Duke Energy Carolinas issued $1 billion of green bonds in November 2018.

“We are providing our customers and communities with ever-cleaner energy—and these investments help us get there even faster as we expand renewable energy across the Carolinas,” said Duke Energy executive vice president and chief financial officer Steve Young. “We saw strong interest in our first green bond last year and are excited to expand these offerings for investors.”

The company is well on its way to achieving its goal of reducing carbon emissions by 40% by 2030, having already reduced carbon emissions by 31% from 2005 levels.

In the last decade, Duke Energy Progress retired 12 older coal-fired units, increased nuclear generation capacity and added more than 2,000 MW of built or purchased solar capacity. For six straight years, the utility has been among the top 10 utilities nationwide for adding solar capacity to its system.

“As we look ahead, we plan to invest in clean, green generation sources into the future and will continue to look for innovative options to finance these projects with diversity-owned firms,” said Young.

The green bonds, priced at a 3.45% fixed-rate coupon and a 10-year maturity, will ensure the company’s eligible green projects continue to be financed on attractive terms to serve Carolinas customers.

Among the underwriters were two diversity banks—Academy Securities and C.L. King & Associates. These two banks are owned and primarily staffed by disabled veterans and women, and increase Duke Energy’s work with diverse investors and suppliers.

“This was an exciting opportunity to support Duke Energy’s investments in green energy as well as its strategy to advance diversity and inclusion,” said Chance Mims, CEO of Academy Securities. “As an investment bank owned by disabled veterans, we are proud of the business community’s efforts to bolster awareness of firms with diverse backgrounds and look forward to seeing this focus further develop.”

News item from Duke Energy

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