Innogy’s Green Bond Committee has decided to reallocate proceeds of its inaugural Green Bond from renewables generation projects to grid projects.
This is due to the planned transaction by E.ON and RWE that would see innogy’s renewables business transferring to RWE, whilst innogy’s bonds will be assumed by the new E.ON group.
Innogy issued the Green Bond with a nominal value of EUR 850 million in October 2017 to refinance one onshore and four offshore wind farms.
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. Besides renewables generation, eligible projects also include the connection of renewable energy production units to the electricity grid and the transportation through the grid, as well as energy efficiency and clean transportation projects, the company said.
E.ON and RWE reached an agreement under which E.ON would acquire RWE’s 76.8% stake in innogy in return for granting RWE an effective participation of 16.67% in E.ON SE.
Under the agreement, E.ON would transfer to RWE most of E.ON’s renewables business. Also, RWE would receive the entire innogy renewables business. The renewables businesses of E.ON and RWE would be brought together under the umbrella of RWE.