(Bloomberg) – Electric utility PacifiCorp has sold $1.1 billion worth of eco-friendly bonds due 2053, the longest maturity offered in the sustainable debt market by a U.S. company this year .
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The Berkshire Hathaway Inc. unit’s offering is one of the longest maturities from a green issuer in the United States, according to data compiled by Bloomberg. Green bonds yield 1.53 percentage points above Treasuries, after initial talks of around 1.8 percentage points, according to a person familiar with the matter.
Proceeds from the offering will be used to fund a range of eligible projects that include renewable energy, clean transportation and climate change adaptation, according to Berkshire Hathaway Energy’s Green Finance Framework. The Portland, Oregon-based electric utility raised $1 billion through similar bonds last year.
PacifiCorp is among 11 companies that rushed to the high-quality U.S. market on Tuesday to raise new capital ahead of expected volatility. Federal Reserve Chairman Jerome Powell is due to speak on Wednesday, with key inflation data to follow on Thursday and the monthly US jobs report on Friday.
Bonds for environmental, social and governance projects account for a smaller share of global corporate debt issuance in 2022, marking the first drop in their relatively short history, according to data compiled by BloombergNEF. Global green bond sales total about $465 billion year-to-date, about 13% lower than the same time last year, according to data compiled by Bloomberg.
Read more: Corporate ESG debt sales are losing market share: ESG Investing
Bank of Montreal, PNC Financial Services Group Inc., Sumitomo Mitsui Banking Corp., Toronto-Dominion Bank and Wells Fargo & Co. handled the sale of the bonds, the person said.
–With help from Venty Mulani and Brian Smith.
(Updates with price details in second paragraph, bond issuance in fourth paragraph, and green bond sales data in fifth paragraph.)
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