ATLANTA – Georgia Power has announced its first sustainability bond, and the first sustainability bond for a domestic utility in the United States. Bond proceeds will be allocated to fund the company’s environmental, renewable, and social initiatives. The 3.25% coupon represents the lowest 30-year coupon for a publicly-traded bond ever issued by any affiliate of Southern Company, Georgia Power’s parent company, and the lower pricing directly benefits Georgia Power customers.
“The sustainability bond issued today is aligned with our ongoing commitment to building a clean and sustainable energy future for Georgia Power customers and the state,” said Dan Tucker, executive vice president, chief financial officer, and treasurer for Georgia Power. “By allocating the proceeds of this bond to fund our social, environmental and renewable initiatives, the company is able to secure benefits for all customers that will last for up to 30 years by way of long-term, low-cost financing.”
With net proceeds of approximately $742 million to be allocated to fund sustainable projects such as our spending with diverse and small business suppliers and our investments in renewable energy projects, the bond aligns with our ongoing commitments to the community and the continued growth of Georgia Power’s solar portfolio, one of the largest voluntary renewable portfolios in the country.
Growing a Sustainable Future
Georgia Power’s commitment to building a clean and sustainable energy future includes helping its customers and other industries reduce their emissions, increase their energy efficiency and minimize their environmental footprint by investing in programs, customer offerings and initiatives. The company continues to offer customers a full range of options to expand access to solar and renewable energy generation that reduce its environmental footprint as well as maintain a focus on resource conservation, efficient energy usage and other sustainability efforts.
Georgia Power already has one of the largest voluntary renewable portfolios in the country and expects to continue as a leader in solar energy production by growing its renewable generation by more than 72 percent by 2025 – increasing the company’s total renewable capacity to 22 percent of its already diverse portfolio.
The sustainability bond is consistent with international standards and the sustainable financing framework published by Southern Company earlier this year. Southern Company was one of the first U.S. utilities to set bold, industry-leading goals to reduce greenhouse gas emissions from its system and has set a goal of net zero greenhouse gas emissions by 2050.