€850mn green bond issued by innogy for wind power projects

German-based innogy, has issued €850mn in an inaugural corporate green bond in order to refinance wind energy projects throughout Europe.

The bond, with an annual coupon rate of 1.25%, was issued through innogy Finance and guaranteed by innogy.

The energy group used its Green Bond Framework, which comprises energy efficiency and eMobility projects, to create place the bond.

The framework allows the ten-year maturity with the yield-to-maturity arriving at 1.36% per year.

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Many of the wind power projects are already in operation, with the remaining currently under construction.

The combined capacity of all of the projects will annually generate 3TWh, creating enough energy to power about 830,000 houses.

“innogy is a sustainable company by conviction and business model,” commented Bernhard Günther, innogy Chief Financial Officer.

“Proceeds from the bond are expected to be used to refinance four offshore wind projects in the UK and Germany,” he added.

“Setting up a Green Bond Framework and issuing the first benchmark corporate Green Bond in Germany is a logical step to underline this position.”

The framework was initiated to correspond with the Green Bond Principles 2017, published by International Capital Market Association (ICMA).