NRG Yield Plans $400 Million Green Bond for Alta Wind Buy

NRG Yield Inc., a spinoff of mostly renewable energy assets by NRG Energy Inc., plans to offer $400 million in bonds for its purchase of the Alta Wind farm.

The so-called green bonds tied to sales of clean energy technologies are due in 2024 and are guaranteed by NRG Yield and its parent, the Princeton, New Jersey-based company said today in a statement.

Proceeds from the offering will help NRG Yield acquire the biggest wind farm in North America for $870 million in cash from Terra-Gen Power LLC. Alta Wind in Tehachapi, California, can produce as much as 947 megawatts. The output is sold to Edison International’s Southern California Edison utility under a long term contract.

The market for green bonds could almost triple this year to $40 billion from $14 billion last year, according to Michael Eckhart, a managing director at Citigroup Inc. in New York.