Constellation offers nation’s first corporate green bond for nuclear energy

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Constellation, the Baltimore-based producer of carbon-free energy, has issued the first corporate green bond in the United States that can be used to finance nuclear energy projects, the company announced Monday.

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.

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.

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.