Constellation Energy issues $900M green bond to fund nuclear energy projects

Published on March 20, 2024 by Dave Kovaleski

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Constellation Energy issued the nation’s first corporate green bond that can be used to finance nuclear energy projects.

Proceeds from the $900 million, 30-year term offering will be used for investments such as maintenance, expansion, and life extensions of its nuclear power generation.

“Elected officials on both sides of the aisle, climate and sustainability advocates and the general public are increasingly recognizing the value nuclear energy delivers, not only for its unmatched 24/7 reliability, but for its positive environmental impact as a clean energy resource. The strong market response shows the investment community agrees nuclear energy is a unique clean-energy technology that is going to play a critical role for decades to come and is a safe, long-term investment,” Dan Eggers, executive vice president and CFO, Constellation, said. “With the nation’s first-ever corporate nuclear green bond issuance as part of our long-term financing mix, Constellation and the market have again confirmed: Nuclear investments are long-term sustainability investments.”

The nuclear green bond offering was based on a new green financing framework that Constellation developed to enable the company to issue green financial instruments.

Crédit Agricole CIB, the corporate and investment banking arm of Crédit Agricole Group, served as Green Structuring agent in Constellation’s nuclear green bond offering.

“Our bank is pleased to have supported Constellation on the first-ever U.S. corporate green bond with proceeds allocated towards nuclear energy. This groundbreaking transaction is a testament to Constellation’s ambitious sustainability efforts, and such leadership in the sustainable finance capital markets will undoubtedly serve as an inspiration for future global nuclear focused green bond issuances,” Romina Reversi, head of sustainable investment banking for the Americas at Crédit Agricole CIB, said.

Constellation Energy, based in Baltimore, is the nation’s largest producer of clean, carbon-free energy.