October 15 (Renewables Now) - German energy company Innogy SE (ETR:IGY) has decided to use the funds from its EUR-850-million (USD 983m) maiden green bond sale for grid projects, rather than renewables, it announced last week.
The company issued the financial instruments last year in order to refinance four offshore wind projects in the UK and Germany and a Dutch onshore wind project. The reallocation of the raised funds will be made following the complex transaction from March this year that included E.on SE’s (ETR:EOAN) planned purchase of RWE AG’s (ETR:RWE) 76.79% stake in Innogy, and RWE’s acquisition of E.on’s major renewable energy operations and Innogy’s own renewables business. Innogy’s bonds will be assumed by E.on following completion of the proposed deal, expected in mid-2019.
The grid projects that will benefit from the financing are split into three main categories. Namely, those are schemes investing in the connection of renewables capacity to the grid, as well as electricity transportation through the grid, grid investments and smart metre investments.
(EUR 1.0 = USD 1.157)