VodafoneZiggo successfully launches 2nd Green Bond to support its sustainability strategy

VodafoneZiggo has announced the successful issuance of its second Green Bond, raising EUR 575 million to further support the company’s sustainability strategy. Following the issuance of its first Green Bond in 2020, VodafoneZiggo continues its commitment to financing projects that contribute to environmental sustainability. Under its Green Bond Framework, VodafoneZiggo ensures that the equivalent of the proceeds will be allocated to green projects within 36 months, in alignment with the company's climate and environmental objectives.

VodafoneZiggo will use the Green Bond proceeds to refinance its existing debt. The company remains committed to a sustainable financial strategy, ensuring that its capital structure aligns with its broader Environmental, Social, and Governance (ESG) goals. This follows the success of the company's first Green Bond in 2020, which raised EUR 700 million and supported green initiatives within the company’s operations.

Long-term ESG goals
VodafoneZiggo CFO Ritchy Drost commented: "The launch of our second Green Bond is a key milestone in our continued commitment to sustainability. We are once again aligning our financial strategy with our long-term ESG goals, ensuring that we reduce our environmental impact while maintaining a sustainable capital structure. This Green Bond provides the opportunity to continue financing initiatives that help us reduce our carbon footprint and further accelerate our transition to a climate-resilient future."

Commitment to invest in green projects
An equivalent amount of VodafoneZiggo’s Green Bond proceeds will be invested in green projects that help reduce the company’s environmental impact, in accordance with its Green Bond Framework. These projects may include investments in renewable energy, energy efficiency improvements, circular economy, clean transportation and green buildings.

The Green Bond Framework has been certified by Sustainalytics, a global provider of ESG research and ratings, ensuring that VodafoneZiggo’s green financing aligns with international best practices as outlined in the ICMA Green Bond Principles. The company is committed to providing progress reports on the allocation of funds and the environmental impact of its green investments, which will be independently audited.

Transaction details
On October 1, 2024, VodafoneZiggo successfully priced its second green bond under the Green Bond Framework. The offering consisted of €575 million 6.125% Senior Notes due 2032, and the transaction was closed on October 8, 2024. The proceeds of this Green Bond will be used to refinance $625 million 6.0% Senior Notes due January 2027, which may occur over a period, by way of open market purchases, privately negotiated transactions, tender offers, repayments, prepayments, redemptions or otherwise. This transaction was leverage neutral and resulted in an increase in VodafoneZiggo's debt tenor.