LONDON — Abengoa SA, a Spanish energy and environment company, plans to issue its first green bond to raise 500 million euros ($642 million) to finance projects.
The high-yield green bond, maturing in 2019, will be offered in dollars and euros to institutional investors, Abengoa said today.
The market for green bonds, which fund environmental and climate-protection projects, is increasingly being tapped by companies and public entities. The market may triple in size this year to more than $40 billion, London-based researcher Bloomberg New Energy Finance has forecast.
Abengoa’s issue will also be Europe’s first high-yield green bond, according to the company. These bonds pay more than investment-grade corporate ones because their credit ratings are lower.
The Seville, Spain-based company expects to use the proceeds for projects that meet certain environmental, social and governance criteria until it obtains long-term funding for the works. The green projects comprise renewable energy, water, power transmission, energy efficiency, bioenergy and waste-to-energy plants, according to its website.
Abengoa, which listed a $721 million U.S. yieldco in June, develops and operates clean energy, water, biofuels and power projects such as transmission lines.
The company, the biggest developer of solar-thermal power plants, is constructing the El Zapotillo aqueduct in Mexico, one of the largest water projects in the world that’s to supply drinking water to almost 1.5 million inhabitants. Other projects include Morocco’s biggest desalination plant in Agadir.
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