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Constellation issues $900M green bond for nuclear

Illustration of a hardhat with an atom on the front.

Illustration: Gabriella Turrisi/Axios

Utility Constellation Energy said it's issuing a corporate green bond worth $900 million to fund its nuclear energy projects, Katie writes.

Why it matters: The market for sustainable bonds continues to grow and could help fund a resurgence in interest in U.S. nuclear power.

Zoom in: Constellation Energy described the bond as "the first corporate green bond in the United States that can be used to finance nuclear energy projects."

  • The Baltimore, Maryland-based utility will use the proceeds to maintain, expand and extend the life of its nuclear power plants.
  • The company has the largest nuclear fleet in the U.S. and operates 21 reactors at 12 sites across the Midwest and eastern U.S.

Catch up quick: Sustainable bonds, which include green bonds, are debt instruments that use the proceeds to focus on activities or assets with a sustainable purpose.

  • Moody's predicts that there will be $950 billion in sustainable bond issuances globally in 2024.

Big picture: The new nuclear green bond shows the utility sector's renewed focus on maintaining aging nuclear power plants as a major part of carbon-free power.

  • Surging electricity demand is making nuclear's baseload power — energy that can be run 24/7 — particularly attractive.
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