Duke Energy Carolinas, a subsidiary of Duke Energy, has issued a US$1 billion in green bond in order to finance clean energy projects, including solar and energy storage plants in North and South Carolina.
Over the last decade, Duke Energy Carolinas has retired older coal-generating plants, increased nuclear generation capacity and added roughly 650MW of built or purchased solar capacity. The company anticipates adding 1.8GW of solar capacity over the next five years.
The green bonds had a weighted average coupon of 3.74% between the three-year and 10-year maturities. The company priced the green bonds on 5 November and closed the transaction on 8 November.
"Today marks a milestone for our company and demonstrates our continued commitment to generating cleaner energy for our customers and communities," said Duke Energy executive vice president and chief financial officer Steve Young. "We are proud to provide this option for investors to advance our goal of reducing carbon emissions by 40% by 2030. Investors are increasingly interested in clean and renewable energy and now we can partner together to transform our energy future in the Carolinas"
Headquartered in Charlotte, N.C., Duke Energy has around 29,000 employees and a generating capacity of 49.5GW and it serves approximately 7.6 million retail electric customers in six states – North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky.
Last month, Duke Energy released a proposal for a new programme that will grow renewable energy options for both commercial and industrial customers in South Carolina.