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M&A in Clean-Energy Loving Germany Could Sully Green Bonds

  • Innogy’s acquisition by EON creates risks for wind-farm bonds
  • Green label may need reassessment on ‘significant change’
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Angela Merkel’s clean-energy push may turn out to be less ‘green’ than expected for bondholders caught up in the upheaval of Germany’s energy industry.

In the latest redrawing of the power map as the nation moves away from nuclear and fossil fuels, EON SE will take over Innogy SE from rival RWE AG, along with 850 million euros ($1 billion) of green bonds sold by Innogy Finance BV in October to finance wind farms.