German energy group innogy has issued €850m in an inaugural corporate green bond to refinance wind energy projects across Europe.
Placed through innogy Finance and guaranteed by innogy, the green bond has an annual coupon rate of 1.25%. It is part of the company’s Green Bond Framework and features a ten-year maturity with the yield-to-maturity arriving at 1.36% per year.
Proceeds from the bond are expected to be used to refinance four offshore wind projects in the UK and Germany, as well as an onshore windfarm in the Netherlands.
The projects are either under construction or already in operation. They have a combined capacity to generate 3TWh of power annually, which is enough to power roughly 830,000 households.
Innogy chief financial officer Bernhard Günther said: “innogy is a sustainable company by conviction and business model.
“Setting up a Green Bond Framework and issuing the first benchmark corporate Green Bond in Germany is a logical step to underline this position.”
innogy further noted that its Green Bond Framework comprises energy efficiency and eMobility projects.
The framework was established in line with the Green Bond Principles 2017, published by International Capital Market Association (ICMA).
ABN AMRO Bank, SociétéGénérale, DZ Bank, Hongkong and Shanghai Banking (HSBC), Landesbank Baden-Württemberg (LBBW) and Mitsubishi UFJ Financial Group (MUFG) were involved as bookrunners of the latest issuance.
Recently, innogy signed a €2bn credit line to obtain financial independence from its majority shareholder RWE.