Southern Company issues €1.1bn in green bonds

Southern Power, a subsidiary of US utility Southern Company, has tapped the European market for its second green bond issuance in a year.

The €1.1 billion issue comes after Southern Power completed a $1 billion issuance last November, the first time an investment-grade utility in the US had offered green bonds. The proceeds will help expand its clean energy portfolio in the US, which generates 2.5GW from 26 solar, wind and biomass projects.

“Southern Power is an industry leader in growing renewable energy projects across the United States,” Southern chief executive Buzz Miller said in a statement. “Our company’s issuance of green bonds builds on our commitment to sustainable generation as America’s premier wholesale energy partner.”

Its 4.5 million customers are mainly in the south-eastern states of Georgia, Florida, Alabama and Mississippi, but it also has renewable assets in California, Texas, New Mexico and Oklahoma.

Southern Company has sought to diversify its portfolio from the 73 coal, oil, gas and hydro plants it operates. It generates 9.6GW of electricity and has added 3.8GW of renewables since 2012.