Georgia Power announced today the first issuance of a sustainability bond for a U.S. domestic utility; it is also the first sustainability bond for the company itself. The company announced it this Friday.
Firstly, the bond will be allocated to fund the company’s environmental, renewable and social initiatives. It is also the lowest 30-year coupon for a publicly traded bond ever issued by the Southern Company, with 3,25%.
Secondly, the Southern Company being a parent company of Georgia Power, the issue will benefit directly to its customers in the state.
Thirdly, the net proceeds from the bond are for approximately $742 million; to fund sustainable projects, like spending in small business, or directly invest in renewable energy projects.
Moreover, “the bond aligns with our ongoing commitments to the community and the continued growth of Georgia Power’s solar portfolio; one of the largest voluntary renewable portfolios in the country,” the company says in the statement.
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Georgia Power with a nurtured renewable energy portfolio
Indeed, Georgia Power already has one of the largest voluntary renewable portfolios in the country; specifically, in solar, the company will grow its solar generation by 72% in 2025. By then, Georgia Power will grow its total renewable capacity by 22 per cent.
Moreover, “Southern Company was one of the first U.S. utilities to set bold, industry-leading goals to reduce greenhouse gas emissions from its system; and has set a goal of net zero greenhouse gas emissions by 2050.” The company underlines.
In addition, Dan Tucker, executive VP and CFO of Georgia Power, said. “The sustainability bond issued today is aligned with our ongoing commitment to building a clean and sustainable energy future for Georgia Power customers and the state.”
In conclusion, “by allocating the proceeds of this bond to fund our social, environmental and renewable initiatives, the company is able to secure benefits for all customers that will last for up to 30 years by way of long-term, low-cost financing.”
