EnBW prices €500 million green hybrid bond for its clean-energy build-out

• EnBW issues a €500 m 30-year green hybrid at 4.5 %, funding solar, wind, EV charging and grid upgrades as part of its €50 bn decarbonisation plan.

Deal snapshot

• Issuer: EnBW Energie Baden-Württemberg AG (ETR: EBK)

• Size & format: €500 million perpetual subordinated “green” hybrid (30-year tenor, first-call 28 Apr 2034)

• Coupon: 4.5 % until the first reset date; thereafter reset every five years against the five-year euro swap plus a step-up

• Investor demand: Books swelled beyond €5 billion—more than ten-times cover, with pricing set inside initial guidance

Why a hybrid, and why now?

Hybrid bonds sit between debt and equity, allowing EnBW to protect its credit metrics while funding capital-intensive growth. Both Moody’s (Baa2) and S&P (BBB-) will treat 50 % of the issue as equity, easing leverage ratios and supporting the utility’s target of solid investment-grade ratings.

Use-of-proceeds under the Green Financing Framework

The money is earmarked exclusively for “Eligible Green Projects,” including:

These categories align with the ICMA Green Bond Principles and EnBW’s own Green Financing Framework.

Strategic context

The deal lands just weeks after EnBW closed a €3.1 billion rights issue and taps into the utility’s €50 billion 2030 investment plan focused on decarbonising Germany’s power, mobility and grid infrastructure. It also keeps the company on course to maintain a €2.5 billion hybrid funding pool, giving management balance-sheet flexibility as capex accelerates.

Market takeaway

EnBW’s successful launch underscores two themes in European corporate finance:

1. Deep investor appetite for green paper—especially hybrids that still offer yield pick-up in a falling-rate environment.

2. Utilities’ pivot to quasi-equity funding to finance massive energy-transition pipelines without sacrificing credit quality.

With the book more than ten times subscribed and pricing through fair value, the bond sets a strong precedent for upcoming green hybrid supply from European infrastructure names.