Reallocation Green Bond
Proceeds of innogy’s inaugural Green Bond reallocated to grid projects
- Sustainalytics confirmed the continued validity of the second party opinion on innogy’s Green Bond Framework
- Investment projects in innogy’s grid business evaluated as Green Bond eligible
Essen, 10 October 2018
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 €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.
With about 90% of all renewables capacity directly connected, the grids of the German Distribution System Operators (DSOs) play a crucial role in the energy transition (Energiewende). The German DSOs, that are part of the innogy Group, have so far directly connected more than 23 gigawatts of renewables capacity. This corresponds to around 21% of total installed renewables capacity in Germany (2017 figures).
In the "Assurance Letter", that was published on 5 October, the internationally recognized ESG agency Sustainalytics has just reconfirmed innogy’s Green Bond Framework which was established in 2017. Furthermore, grid investments in the following categories have been evaluated by Sustainalytics as eligible and in line with the International Capital Market Association’s Green Bond Principles:
- Investments to connect renewables to the grid,
- Grid investments related to the Energiewende,
- Smart meter investments.
innogy’s Green Bond Committee decided that the proceeds of the inaugural Green Bond issued in 2017 will be completely reallocated from renewables generation projects to grid projects, in line with the above eligible categories. The investments have been carefully examined and verified by the Green Bond Committee Members. In total, more than €1.7 billion of eligible investments between 2014 and 2018 have been identified.
Further information about the allocation of Green Bond proceeds to the grid categories, its impact with respect to CO2 avoidance as well as the Sustainalytics’ Assurance Letter is available on innogy’s Green Bond webpage: https://iam.innogy.com/en/about-innogy/investor-relations/bonds/green-bonds.