Innogy redirects bond funding to grids

GERMANY: Developer Innogy has announced its intention to reallocate €850 million of proceeds from its 2017 bond framework from renewable projects to grid investments.

Innogy will redirect funds from the green bond from renewables to grid projects

The firm said its Green Bond committee made the decision as a result of Innogy’s imminent takeover by E.on.

Under the complicated March 2018 deal, Innogy will become part of E.on, except for its renewable assets, which will be transferred to Innogy’s current owner RWE.  

The ten-year €850 million green bond was issued in October 2017 to refinance one onshore and four offshore wind projects, the firm said. It was the Innogy's first green bond. 

"Until the maturity of the Green Bond, in case of divestment or cancellation of an allocated eligible green project, Innogy committed in its Green Bond Framework to reallocate the proceeds to other eligible green projects," the company said in a statement.

In keeping with the green bond principles, Innogy said it could invest in projects that connect renewables to the grid; that are "related to the Energiewende" — Germany’s clean energy transition — or in smart meters.