Convertible bonds in the energy storage sector

What does EDF do with its green convertible bonds?

Électricité de France (EDF) sold a historic €2.4bn green convertible bond on 8 September, with the proceeds to be allocated to finance or refinance renewable energy production and storage activities consistent with EU requirements. This was followed by EDF.

Which companies have issued green convertible bonds?

Since May 2020, nine companies have issued green convertible bonds. Among them is Neoen, which issued the first European green convertible bond for €170m on 28 May. Neoen is a renewable energy company that builds and manages power plants in solar, wind and biomass.

Are green convertible bonds on the rise?

Interestingly, the issuance of green convertible bonds is also on the rise. Before 2020, only two green convertible bonds were issued: Sumitomo Forestry (Japan) in 2018 and Link REIT (Hong Kong) in 2019.

How do convertible bonds work?

ns by combining features of both debt and equity instruments into one product. For issuers, convertible bonds provide a way to raise additional capital at what can be relatively advantageous rates in

Are convertible bonds a good investment?

onversion into shares of the company at a prescribed conversion price and time. As such, and depending on the terms of a particular issuance, convertible bonds can allow investors the possibility to capitalize on the future growth of a company while at the same time maintaining certain protect

What is the hybrid nature of convertible bonds?

NDS: KEY CONSIDERATIONS AND DIFFERENCES IN PRACTICE ACROSS EUROPEIntroductionThe hybrid nature of convertible bonds combines aspects of both debt and equ y and can provide companies with alternative or additional sources of funding. Typically, convertible bonds will pay investors a set amount of interest for a given period of time but allow