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Success stories

28/11/2017

1st corporate green bond ever in Germany

Wind energy has become one of the leading choices for green and environmentally friendly electricity generating capacity over the years and currently covers more than 10% of EU's electricity demand.

And the winners are … wind farms!

The growth depends on onshore (wind power stations on land) and offshore (wind turbines in the open sea) wind farms. Especially offshore wind farms have gained traction, as they have become increasingly accepted by the public and the wind yield is higher, since winds are stronger and more consistent in the open sea.

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. The project will refinance four offshore projects in the UK and Germany and one onshore project in the Netherlands. We were glad to have had Societe Generale as a professional and highly knowledgeable partner on board for this transaction.

Dr. Volker Heischkamp
Treasurer, Project Leader/ innogy SE

As an established European energy company and a leader among wind farm operators in Europe, innogy provides gas and electricity for more than 23 million customers. To further strengthen its wind farm operations and supply its clients with environmentally friendly energy, the company decided to refinance four offshore projects in the UK and Germany and one onshore project in the Netherlands. The wind farms in question are under construction or already in operation and the annual expected electricity production of the wind farms is about 3 TWh (terawatt hours). They thus generate sufficient CO2-free electricity to supply approximately 830,000 households.

Societe Generale has demonstrated again its pioneer position in the definition of the Positive Impact Finance and we are proud that we can contribute to the first Corporate Green Bond issue in Germany which should have an overall signal effect in the market as well as positive impact on the environment. This continues our success story in the German-speaking countries that started with the first ever Austrian Green Bond for Verbund in 2014.

Martin Wagenknecht
Managing Director - Debt Capital Markets/ Société Générale Corporate & Investment Banking

It was decided that the proceeds needed for the refinancing would come from innogy's first Green Bond issue. On October 12, a 10-year benchmark green bond senior mandate was announced to the market, which made this the first ever German corporate Green Bond in benchmark size and the largest green bond issued by a private institution to date.

Societe Generale once again demonstrated its leadership in sustainable and positive impact finance by acting as Joint Structuring Advisor and Global Coordinator for this transaction. The same team that helped issue the first ever Austrian Green Bond for Verbund led the pioneering effort necessary to rise to the challenge of the first German corporate Green Bond.

The Green Bond met with extraordinary interest from investors. It was oversubscribed several times on the back of a book from about 250 investors, thus yet again proving the relevance and timeliness of the energy transition in Europe as well as confidence in innogy's newly created green bond framework. The transaction also further consolidated Societe Generale's position at the forefront of the green finance change in German-speaking markets.

Leveraging our expertise in supporting environmentally and socially friendly investments, we offer clients a wide range of solutions in the renewables field, thereby meeting the increasing demand while matching sustainability agendas. In this context, innogy is an examplary client and we are looking forward to support similar projects in the future.

Ralph Neher
Senior Banker/ Société Générale Corporate & Investment Banking