Commercial, Energy Efficiency, Finance - March 2, 2021
Georgia Power issues first green bond for $742 million
Georgia Power announced Feb. 26 that it issued its first sustainability bond for $742 million, representing the first sustainability bond for a domestic utility in the United States.
The utility plans to use the net proceeds from the bond to fund sustainable projects such as investing in renewable energy and working with diverse and small business suppliers. The 3.25% coupon is the lowest 30-year coupon for a publicly-traded bond ever issued by Southern Company, Georgia Power’s parent company.
“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,” Dan Tucker, executive vice president, chief financial officer, and treasurer for Georgia Power, said in a statement. “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.”
This bond is just the most recent continuation of the utility’s sustainability strategy. Georgia Power has one of the largest voluntary renewable portfolios in the country and expects to grow its renewables generation by more than 72% by 2025. The utility’s parent company is committed to achieving net zero greenhouse gas emissions by 2050 and continues to offer customers ways to expand their own access to renewable energy and lower their individual carbon footprints.