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Demand for green bonds is growing steadily. In addition to security, liquidity and yield, sustainability is becoming an increasingly important fourth criterion for investors. CFO Ronald Trächsel adds: “We take the needs of the capital market into account and are the first listed Swiss company to offer the opportunity to invest in a green bond on the Swiss exchange. In doing so, we are positioning ourselves as one of the pioneers in the area of green bonds on the Swiss capital market.”
The CHF 200 million will flow exclusively into green projects. For that, BKW aligned with the Green Bond Principles of the International Capital Market Association (ICMA). These stipulate that the money must flow into projects with measurable ecological added value. BKW's green bond consists of various small hydroelectric power plants in Switzerland and wind power plants in Norway and France.
BKW also wants to make a contribution to sustainability in its production park. “Our goal is to have 75 percent of the installed capacity of our production park renewable by 2023,” says CEO Suzanne Thoma. BKW is thus systematically continuing along the path it has already taken: since 2013, the company has relied exclusively on renewable energies when investing in new power plants.
BKW's fixed, senior unsecured green bond worth CHF 200 million has a coupon of 0.25 percent and a term of 8 years. The settlement of the bond will take place on 29 July 2019. The issueance was led by BNP Paribas (Suisse) SA and UBS AG. The bond will be listed on the SIX Swiss Exchange.
Watch the video for the BKW green bond with CEO Suzanne Thoma and CFO Ronald Trächsel here.
You can find out more about BKW’s sustainability commitment here.