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TenneT issues €3 billion green bond

4C Offshore | Tom Russell
By: Tom Russell 20/10/2022 TenneT

TenneT Holding B.V. (TenneT), a transmission system operator (TSO) active in Germany and the Netherlands, announced that it launched and priced a senior Green Bond issue of €3 billion on the 19th of October.


The transaction was split in four tranches of €650 million (term: 6 years, coupon 3.875%), €500 million (term: 9.5 years, coupon 4.250%), €1,000 million (term: 12 years, coupon 4.500%)  and €850 million (term: 20 years, coupon 4.750%) and received support of six active Joint Bookrunners: ABN AMRO, Deutsche Bank, HSBC, ING, Rabobank and SMBC.


Arina Freitag, CFO of TenneT: "This decade will require record investments in security of supply and the expansion of renewables in Germany, the Netherlands and Europe. This is the backbone for the energy transition and a key success factor for our industries. As one of the biggest investors in Europe, we are deeply committed to make an important contribution to this profound transformation. This is also reflected in our financial strategy: Green Finance has been part of our DNA for years and despite the current challenges it will even play a growing role in our company strategy.”


Proceeds will, in line with previous issues, be used to invest in green power transmission projects in the Netherlands and Germany focused on connecting large-scale offshore wind farms to the onshore electricity grid and investments in the onshore transmission grid with the main objective to increase the transmission of renewable energy.

The TSO is heavily investing in the energy transition in Europe and its investments are mainly directly related to the increase in renewable energy sources, such as wind and solar energy. This requires both onshore and offshore grid expansions in the Netherlands and Germany.


In the next ten years, TenneT plans to build 4,000km of additional onshore grid connections in Germany and approximately 1,250km onshore grid connections in the Netherlands. Around 2030, TenneT expects to have realized approximately 40 GW of installed connection capacity for offshore wind farms in the Dutch and German parts of the North Sea.
 

For more information on offshore wind farms worldwide, click here.

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