EnBW, an energy supplier in Germany and Europe, has successfully issued two green hybrid bonds with a combined volume of €1 billion (approximately $1.08 billion), drawing strong investor demand and reaching peak oversubscription of around ten times, driven by broad-based international participation.
Proceeds from the issuance will be invested across EnBW’s integrated energy portfolio, including solar projects, onshore and offshore wind farms, fast-charging infrastructure for electric vehicles and grid expansion. All investments will be directed towards climate-friendly projects in line with the company’s Green Financing Framework.
Following the transaction, EnBW’s outstanding hybrid bond volume has increased from €2.5 billion (about $2.7 billion) to €3.5 billion (around $3.8 billion). Hybrid instruments are a core element of the company’s capital structure and are treated as 50% equity by rating agencies Moody’s and Standard & Poor’s, supporting EnBW’s credit metrics. The group is currently rated Baa1 by Moody’s and A- by S&P.
Marcel Münch, Senior Vice President Finance, M&A and Investor Relations at EnBW, said the issuance marked a strategic step for the group. “With this transaction, we have permanently increased our hybrid volume from €2.5 billion to €3.5 billion. This strengthens our balance sheet over the long term and increases our financial flexibility as we implement the largest investment programme in EnBW’s history,” he said.
Between 2024 and 2030, EnBW plans to invest up to €50 billion (approximately $54 billion) in the affordable, secure and climate-friendly transformation of the energy system. The company estimates annual financing requirements of between €2.5 billion and €3 billion (around $2.7–3.2 billion) to transition its generation and grid infrastructure towards climate neutrality.
Münch added that the latest bond issue, together with pre-funding completed last autumn, has already covered a large share of EnBW’s financing needs for 2026.
The transaction comprises two green hybrid bond tranches of €500 million each (around $540 million each). The first tranche carries an initial coupon of 3.625%, with a 30-year maturity and a first call date in 2031. The second tranche offers an initial coupon of 4.5%, also with a 30-year maturity, and a first call date in 2035. The issue date for both tranches is 10 February 2026.
