Canadians Issue Green Bond to Finance German Offshore Wind Projects

Canada Pension Plan Investment Board (CPPIB) has issued its first Euro-denominated Green Bond.

The sale of EUR 1 billion in 10-year fixed-rate notes will enable CPPIB to invest further in eligible assets such as renewables, water, and real estate projects, as well as diversify the fund’s investor base.

Among the Green Bond-eligible investments recently made by CPPIB is a joint venture in renewable power and offshore wind assets.

In 2018, CPPIB acquired 49% of Enbridge’s interests in two German offshore wind projects with a combined capacity of 609MW. The transaction amounted to circa CAD 1.75 billion (EUR 1.14 billion) and also included the sale of Enbridge’s 49% interest in select onshore wind and solar assets in North America.

The two offshore projects are the Hohe See and the Albatros wind farms in the German North Sea.

“The European market for Green Bonds is robust and gaining even more traction amid changes such as the EU’s increased targets for how much of the region’s consumed energy comes from renewable sources,” said Poul Winslow, Senior Managing Director & Global Head of Capital Markets and Factor Investing.

“The capital raised will help finance our expanding portfolio of eligible green assets and demonstrate how we integrate environmental considerations into our investment decisions.”

The 497MW Hohe See and the 112MW Albatros offshore wind farms will comprise a total of 87 Siemens Gamesa SWT-7.0-154 turbines scheduled for commissioning at the beginning of 2020.

Germany’s EnBW controls the remaining 51.1% interest in the projects.