First Corporate Green Bond for Nuclear Energy from Constellation

Constellation (Nasdaq: CEG), the nation’s largest producer of carbon-free energy,  issued the first corporate green bond in the United States that can be used to finance nuclear energy projects. Constellation will use proceeds from the $900 million, 30-year term offering for investments such as maintenance, expansion and life extensions of its clean, reliable nuclear power generation that reduce or avoid carbon emissions or provide other environmental benefits.

A green bond is a financial instrument that is issued specifically to finance projects or activities that deliver positive environmental or climate impacts. It allows investors to actively support investments that promote sustainability and help address environmental challenges.

“Elected officials on both sides of the aisle, climate and sustainability advocates and the general public are increasingly recognizing the value nuclear energy delivers, not only for its unmatched 24/7 reliability but for its positive environmental impact as a clean energy resource. The strong market response shows the investment community agrees nuclear energy is a unique clean-energy technology that will play a critical role for decades to come and is a safe, long-term investment,” said Dan Eggers, executive vice president and CFO, Constellation. “With the nation’s first-ever corporate nuclear green bond issuance as part of our long-term financing mix, Constellation and the market have again confirmed: Nuclear investments are long-term sustainability investments.”

The nuclear green bond offering was based on a new green financing framework that Constellation developed to enable the company to issue green financial instruments. Proceeds from the issuance can be used to finance green projects such as nuclear uprates, which increase production of clean, carbon-free energy at Constellation’s clean energy centers, technologies to produce clean hydrogen, energy storage systems, wind repowering and carbon-free energy solutions for Constellation’s commercial customers.

Crédit Agricole CIB, the corporate and investment banking arm of Crédit Agricole Group, served as Green Structuring agent in Constellation’s nuclear green bond offering.

“Our bank is pleased to have supported Constellation on the first-ever U.S. corporate green bond with proceeds allocated towards nuclear energy. This groundbreaking transaction is a testament to Constellation’s ambitious sustainability efforts, and such leadership in the sustainable finance capital markets will undoubtedly serve as an inspiration for future global nuclear-focused green bond issuances,” said Romina Reversi, head of sustainable investment banking for the Americas at Crédit Agricole CIB.

The firm Sustainalytics has verified the environmental benefits of Constellation’s framework and its alignment with the Green Bond Principles 2021, issued by the International Capital Markets Association and Green Loan Principles 2023 by the Loan Market Association. These voluntary guidelines for issuing or borrowing green financing instruments support a green label for Constellation’s bond issuance.

Constellation’s nuclear green bond issuance comes on the heels of the company’s ninth-place ranking on Barron’s list of the 100 most sustainable U.S. companies and being named one of America’s most just companies by JUST Capital and CNBC. Learn more about Constellation’s sustainability performance in its 2023 sustainability report.