Italian utility Hera has issued a €500 million European Green Bond, marking its first under the EU Green Bond Standard. The bond will fund projects across three areas: the integrated water cycle and wastewater collection and treatment systems, circular economy and waste management initiatives, and energy efficiency infrastructure.
Green bonds are increasingly important for European water utilities, which face mounting investment needs to modernise ageing infrastructure, reduce leakage, enhance wastewater treatment, and adapt to climate change. According to recent data, European water utilities will require tens of billions of euros over the next decade to meet regulatory and sustainability targets. Traditional funding alone cannot cover these costs, making capital markets a key source of financing.
Hera, the first Italian company to issue a green bond back in 2014, is positioning itself at the forefront of sustainable utility finance. By aligning with the EU Green Bond Standard, the company is committing to transparency and rigorous reporting on environmental outcomes — a move that has clearly resonated with investors: the bond was oversubscribed nearly sevenfold, attracting approximately €3.6 billion in orders against the €500 million offered.
While the bond also supports energy-efficiency and circular-economy investments, the allocation to water infrastructure highlights the sector's role in the transition to sustainable, climate-resilient urban services. As European regulators tighten environmental and reporting standards, green bonds may become an increasingly common tool for funding essential water projects.
