Fixed Income
Sustainability-Linked Finance
For NRG, the issuance of Sustainability-Linked Bonds reinforces its commitment to a low-emissions future. Such bonds represent the next step in aligning NRG’s business and financing with its commitments and values by creating a direct link between its climate and funding strategies.
Sustainability-Linked Bond Framework – November 2020
Second Party Opinion on NRG's Sustainability-Linked Financing Framework
In 2020, NRG completed the issuance of $900 million in senior secured first lien notes in a landmark issuance, with NRG pioneering the first Sustainability-Linked Bond (SLB) in North America, and the first issued by any energy company outside of Europe. In 2021, we once again utilized our Sustainability-linked bond framework, issuing and additional $1.1 billion of senior notes due 2032. These SLBs link attractive financing to the realization of our previously announced goals to achieve a 50% reduction of absolute greenhouse gas (GHG) emissions by 2025, and reach net-zero GHG emissions by 2050, from the current 2014 baseline.
In 2019, NRG became the second U.S.-based power company to engage in an ESG-linked loan. This Sustainability Linked Loan (SLL) or ESG loan embeds a pricing mechanism linked to specific sustainability metrics. Although our $2.6 billion SLL was only the third such transaction for a U.S. power company, demand is growing for this type of financing, which emphasizes a potential increased access to capital by demonstrating strategic long-term planning of corporate responsibility. More information about our SLL can be found here.
Maturity Profile
($ Millions)
| As of 9/30/2021 | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total¹ |
| Recourse | $- | $- | $0 | $600 | $500 | $7,500 | $8,600 |
| Other Non-Recourse | $4 | $4 | $3 | $2 | $2 | $1 | $16 |
| Total NRG Recourse & Non-Recourse Debt | $4 | $4 | $3 | $602 | $502 | $7,501 | $8,616 |
Maturity Profile: Corporate Debt
($ Millions)
| As of 9/30/2021 | Interest Rate | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total |
| Senior Notes, due 2027² | 6.63% | $- | $- | $- | $- | $- | $875 | $875 |
| Senior Notes, due 2028 | 5.75% | - | - | - | - | - | 821 | 821 |
| Senior Notes, due 2029 | 5.25% | - | - | - | - | - | 733 | 733 |
| Senior Notes, due 2029 | 3.38% | - | - | - | - | - | 500 | 500 |
| Senior Notes, due 2031 | 3.63% | - | - | - | - | - | 1,030 | 1,030 |
| Senior Notes, due 2032 | 3.88% | - | - | - | - | - | 1,100 | 1,100 |
| Convertible Senior Notes, due 2048³ | 2.75% | - | - | - | - | - | 575 | 575 |
| Senior Secured, First Lien Notes, due 2024 | 3.75% | - | - | - | 600 | - | - | 600 |
| Senior Secured, First Lien Notes, due 2025 | 2.00% | - | - | - | - | 500 | - | 500 |
| Senior Secured, First Lien Notes, due 2027 | 2.45% | - | - | - | - | - | 900 | 900 |
| Senior Secured, First Lien Notes, due 2029 | 4.45% | - | - | - | - | - | 500 | 500 |
| Tax-exempt bonds | 1.25 - 4.75% | - | - | - | - | - | 466 | 466 |
| Total NRG Recourse Debt | $- | $- | $0 | $600 | $500 | $7,500 | $8,600 |
Maturity Profile: Non-Recourse
($ Millions)
| As of 9/30/2021 | Interest Rate | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total |
| Finance Leases | Various | $4 | $4 | $3 | $2 | $2 | $1 | $16 |
| Total NRG Non-Recourse Debt | $4 | $4 | $3 | $2 | $2 | $1 | $16 |
¹Excludes revolving credit facilities
²Additional $500 MM redeemend October, 2021; Remaining Balance $375 MM as of 11/04/2021
³The effective interest rate was 5.19% and 5.05% for the years ended December 31, 2020 and 2019, respectively. As of the ex-dividend date of October 29, 2021, the Convertible Senior Notes were convertible at a price of $44.89, which is equivalent to a conversion rate of approximately 22.2761 shares of common stock per $1,000 principal amount