TenneT issues EUR-1.1bn green bond to fund grid investments

Dutch grid operator TenneT has issued a EUR-1.1-billion (USD 1.2bn) green hybrid bond to finance investments in green power transmission projects in the Netherlands and Germany, mostly related to the interconnection of offshore wind parks.

The transaction was met with strong investor interest that led to an over-six times oversubscription level, the company said on Thursday.

The issue consists of a dual-tranche hybrid bond of EUR 550 million, with a coupon of 4.625% and a non-call period of 5.25 years, and another EUR-550-million tranche with a coupon of 4.875% and a non-call period of eight years.

Funds from the transaction will be largely allocated to build infrastructure facilities to connect offshore wind parks to the onshore electricity network. Some of the proceeds will go for investments in the onshore transmission grid that will help the further integration of renewable energy capacity.

Commenting on the deal, TenneT’s CFO Arina Freitag said that the move is underpinned by the company’s commitment to spend EUR 160 billion on grid expansion in the Netherlands and Germany over its 10-year investment plan for 2024-2033. “For this investment agenda we need a solid capital position,” she said.

(EUR 1.0 = USD 1.089)

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