Summary
Sempra Energy's indirect subsidiary, San Diego Gas & Electric Company (SDG&E), successfully closed a public offering of $750 million in Green First Mortgage Bonds. These bonds mature in 2051 and carry a coupon rate of 2.950%. The net proceeds to SDG&E, after deducting underwriting discounts and estimated expenses of $2 million, represent approximately 98.493% of the principal amount. This issuance is part of SDG&E's ongoing financing strategy and was registered under an existing Form S-3 registration statement. The "Green" designation suggests the proceeds are intended for environmentally beneficial projects, which is a positive signal for investors focused on Environmental, Social, and Governance (ESG) criteria. The bonds will be redeemable prior to maturity under specified conditions outlined in the indenture.
Key Highlights
- 1San Diego Gas & Electric Company (SDG&E) closed a $750 million public offering of Green First Mortgage Bonds.
- 2The bonds have a maturity date of August 15, 2051, and an annual interest rate of 2.950%.
- 3The net proceeds to SDG&E are approximately $742.4 million after underwriting discounts and estimated expenses.
- 4The bond issuance was registered under Sempra's existing Form S-3 registration statement (File No. 333-239178).
- 5The bonds are designated as "Green" bonds, implying use of proceeds for environmentally friendly initiatives.
- 6Interest payments are semi-annual, due on February 15 and August 15, with the first payment on February 15, 2022.
- 7The bonds are subject to redemption prior to maturity under terms detailed in the indenture.