Independent energy producer ContourGlobal, backed by KKR, has successfully tapped into the green bond market, issuing a dual-tranche offering that garnered significant investor interest. The UK-based company, known for its global portfolio of generation and storage facilities, priced two senior green bonds in early 2025, signaling its commitment to sustainable energy and decarbonization. This strategic financial move included a 500 million euro bond with a 5% coupon and a 510 million US dollar bond boasting a 6.75% coupon, demonstrating the company’s appeal to both European and US investors.
The market response to ContourGlobal’s green bond issuance was overwhelmingly positive, with demand exceeding the available amount by 4.5 times. This robust oversubscription underscores strong investor confidence in ContourGlobal’s sustainability strategy and the growing appetite for green investments in the energy sector. The proceeds from these issuances are earmarked for investments in renewable energy projects, aligning with ContourGlobal’s ambitious target of achieving net-zero direct emissions by 2040. This commitment involves not only expanding its renewable energy capacity but also actively transitioning away from emission-intensive assets.
The green bond framework underpinning this issuance received a positive assessment from Sustainable Fitch, earning an “Excellent” Second Party Opinion. This independent appraisal affirms the framework’s alignment with the International Capital Market Association (ICMA) Green Bond Principles 2021, further bolstering investor confidence in the environmental integrity of ContourGlobal’s green financing. Sustainable Fitch also recognized ContourGlobal’s broader sustainability strategy as demonstrating “Substantial Transition,” highlighting the company’s significant strides towards its Net Zero goals.
Antonio Cammisecra, CEO of ContourGlobal, emphasized the significance of this green bond issuance, stating, “The first issue of Corporate Green Bonds in our almost 20-year history underlines our commitment to growth and transformation into a more sustainable independent energy producer.” He further highlighted the company’s dedication to investing in renewable energy, battery storage, and innovative technologies to deliver value to stakeholders and contribute to the global fight against climate change. Cammisecra also expressed satisfaction with the market’s positive reception, noting it reflects the company’s ongoing efforts to engage with investors committed to a low-carbon economy and support the United Nations Sustainable Development Goals, particularly those related to affordable and clean energy and climate action.
ContourGlobal’s strategic shift towards sustainability comes after its acquisition by KKR in December 2022, following delisting from the London Stock Exchange. The acquisition, valuing the company at a significant enterprise value of 6.14 billion US dollars, provided a strong platform for ContourGlobal to accelerate its transition towards renewable energy. Financially, while the company experienced a revenue dip in 3Q24 compared to the previous year ($1.31 billion vs $1.69 billion), it maintains a strong financial base, with 2023 revenues reaching $1.95 billion and adjusted EBITDA of $919 million.
In Italy, ContourGlobal’s footprint includes 18 photovoltaic plants with a total gross capacity of 65 MW, operational since between 2007 and 2013. These assets further contribute to the company’s renewable energy portfolio and its commitment to sustainable operations. The successful green bond issuance marks a significant step in ContourGlobal’s journey towards becoming a leading sustainable independent energy producer, leveraging both euro and dollar markets to fuel its green ambitions.
