RALEIGH – Duke Energy Progress completed the sale of $1 billion in first mortgage bonds in two series carrying interest rates of 5.55% and 6.15%.
The utility completed the issuance Sept. 11, according to a Form 8-K filed with the Securities and Exchange Commission. The sale included $700 million of 5.55% bonds due in 2036 and $300 million of 6.15% bonds due in 2056.
The bonds will pay interest twice a year on March 15 and Sept. 15, beginning March 15, 2027. They are secured by a continuing lien under Duke Energy Progress’ mortgage and rank equally with its other outstanding first mortgage bonds.
The 2036 bonds were offered to the public at 99.650% of principal, while the 2056 bonds were offered at 99.904%. Duke Energy Progress expects aggregate net proceeds of approximately $991 million after underwriting discounts and related offering expenses.
The company plans to use an amount equal to the net proceeds to pay down part of its short-term intercompany debt under a borrowing arrangement with Duke Energy Corp. and for general company purposes. It reported approximately $647 million of outstanding short-term money-pool borrowings at an annual interest rate of 3.84% as of Aug. 31.
Duke Energy Progress is a Raleigh-based regulated utility and an indirect wholly owned subsidiary of Duke Energy Corp. It supplies electricity to approximately 1.8 million residential, commercial and industrial customers across about 28,000 square miles in North Carolina and South Carolina.
As of Dec. 31, 2025, the utility reported about 14,068 megawatts of owned generation capacity, 75,400 miles of distribution lines and 6,300 miles of transmission lines.