Natural gas and electricity provider NRG Energy Inc. said Wednesday it’s issuing $900 million in bonds tied to its performance in meeting sustainability targets, with the proceeds to go toward the company’s previously announced acquisition of Direct Energy.

The event marks the first issuance of such an instrument, dubbed a Sustainability-Linked Bond (SLB), in North America, according to NRG. The SLB “aligns NRG’s business and financing with company commitments and values by creating a direct link between climate and funding strategies,” the company said.

The SLB ties financing to NRG reaching its previously stated goals to reduce absolute greenhouse gas (GHG) emissions by 50% by 2025 versus the 2014 baseline, with the longer-term target of net-zero GHG by...