Innogy issues EUR-850m green bond for European wind

Zuidwester wind farm. Image by innogy.com.

October 13 (Renewables Now) - German energy company Innogy SE (ETR:IGY) issued its inaugural green bond of EUR 850 million (USD 1bn) to refinance offshore wind projects in the UK and Germany and a Dutch onshore wind project.

The 10-year bond was placed via Innogy Finance BV and is guaranteed by Innogy SE. It bears an annual coupon of 1.25%, with the yield-to-maturity arriving at 1.36% per year.

The wind projects to be refinanced with the bond proceeds are under construction or in operation. Their total output per year is estimated at roughly 3 TWh, or enough carbon dioxide (CO2)-free power for some 830,000 households.

ABN AMRO, Societe Generale, DZ Bank, HSBC, LBBW and MUFG acted as bookrunners. Innogy said on Thursday that the issuance attracted strong interest from investors and was oversubscribed “several times”.

Apart from renewables, Innogy’s Green Bond Framework also includes energy efficiency and eMobility projects.

Last week, Innogy also signed a EUR-2-billion credit line, thus achieving financial independence from its majority shareholder RWE AG (ETR:RWE). Soon after that, rating agency S&P upgraded its rating to BBB from BBB-.

Green bond issuance since the start of the year and up to September 28 reached USD 83 billion, according to the Climate Bonds Initiative (CBI), surpassing 2016's result of USD 81.6 billion. CBI's forecast for 2017 stands at USD-130-billion and Innogy just helped get the world closer to that figure. ‚Äč

(EUR 1 = USD 1.19)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for seven years now. She's got a soft spot for emerging markets.

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