(Bloomberg) -- Utilities are leading a return of companies to Europe’s debt market as the region braces for a winter energy crunch.

Germany’s Eurogrid GmbH sold euro green bonds due in nine years on Wednesday, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. The utilities sector has accounted for well over a third of August’s 6 billion euros ($6 billion) of non-financial bond issuance, according to data compiled by Bloomberg.

Eurogrid pulled in investor orders of over 6.5 billion euros for its 750 million euro deal, tightening the spread above mid-swaps by 35 basis points from initial marketing. It follows a 600 million-euros offering from E.ON SE on Monday and a 1.25 billion-euro sale from RWE AG last week. Both issuers trimmed the spreads offered on their deals by at least 20 basis points.

“There is an expectation that utilities will not be able to pass on all of the rising energy prices to consumers and consequently the funding needs and need for capital should increase,” said William Weaver, head of EMEA debt capital markets at Citigroup Inc. “On a standalone basis the credit metrics for the sector will be weakened by recent factors but the implicit state support is a mitigant.”

A Eurogrid spokesperson didn’t respond to requests for comment by telephone and email.

Energy firms are facing surging power prices as intense summer heatwaves increase electricity demand and cut production capabilities. This comes even before a potentially bleak winter, with expectations of a gas crunch causing energy shortages and deepening a consumer cost-of-living crisis.

The UK could face potential blackouts for industry and even households this winter, if the cold weather combines with gas shortages. Meanwhile, one in six households in the US have fallen behind on their utility bills as electricity costs skyrocket and threaten to plunge economy’s across the world in to recession.

(Updates with pricing details in third paragraph and comments in fourth paragraph)

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