Public Service Enterprise Group Inc., the owner of New Jersey’s biggest power provider, sold green bonds for the first time to help it transition to cleaner energy.

The company, through its subsidiary Public Service Electric and Gas Co., sold $500 million of notes maturing in 10 years, according to a person with knowledge of the matter. The offering yields 1.2 percentage points more than Treasuries after an initially discussed level of as high as 1.5 percentage points, said the person, who asked not to be identified as the details are private.

PSEG has committed to allocating an amount equivalent to the net proceeds of any financing issued under its sustainable framework exclusively to fund eligible projects, including green and renewable energy, climate change adaptation and clean transportation to support New Jersey’s clean energy goals, according to a second party opinion by S&P Global Ratings published March 4.

Global sales of green bonds hit a record $513 billion last year, according to data compiled by Bloomberg. Climate Bonds Initiative, a London-based organization that sets green bond standards, estimates annual sales could reach fresh highs of between $900 billion and $1 trillion by the end of this year -- and as much as $5 trillion by 2025.

PSEG said in June it would eliminate carbon emissions from its fossil fuel plants by by 2030, two decades earlier than its prior target. It closed its last coal facility in May of 2021, and in August reached a deal to sell its natural gas power plants.

The goal is 20 years ahead of larger rivals including Duke Energy Corp. and Dominion Energy Inc., which have set 2050 net-zero targets. It’s also earlier than President Joe Biden’s target of a carbon-free U.S. power grid by 2035.

Mitsubishi UFJ Financial Group Inc., Bank of America Corp. and BNP Paribas SA managed the bond sale, the person said.

--With assistance from Andrew Kostic.

This article was provided by Bloomberg News.