Clifford Chance advises Siemens Energy on its €1.5 billion inaugural green bond issue

International law firm Clifford Chance has advised Siemens Energy on its €1.5 billion inaugural green bond issue. This follows the establishment of Siemens Energy’s Green Bond Framework in January 2023.

The transaction has two fixed rate tranches, each with a volume of €750 million. One bond has a maturity of 3 years, with an annual coupon of 4%, and the other bond has a maturity of 6 years, with an annual coupon of 4.25%. The bonds are listed and admitted to trading on the Euro MTF of the Luxembourg Stock Exchange.

Siemens Energy intends to use the proceeds from the Green Bond in line with its Green Bond Framework to re-finance existing debt of Siemens Gamesa Renewable Energy (SGRE), a key player in the wind-power business in which Siemens Energy holds a 97.79% majority stake. Portions of the net proceeds may also be used to refinance the acquisition of outstanding shares of Siemens Gamesa by Siemens Energy.

Clifford Chance frequently advises corporate and financial institution issuers and bank syndicates in connection with green and social bonds and other ESG-related transactions.

The international Clifford Chance advisory team for Siemens Energy comprised partner Sebastian Maerker, senior associate Wolfgang Ettengruber and transaction lawyers Marlen Klepsch and Lea Teckentrup (all Capital Markets, Frankfurt).