TenneT launches €3.85 billion bond

4C Offshore | Tom Russell
By: 04/05/2022 TenneT
TenneT Holding B.V. (issuer ratings A3/A-, stable outlook) has announced that it has  launched and priced a senior Green Bond issue of €3.85 billion.

Split in four tranches of €1,250 million (term: 4.5 years, coupon 1.625%), €1,000 million (term: 7.5 years, coupon 2.125%), €750 million (term: 11 years, coupon 2.375%) and €850 million (term: 20 years, coupon 2.750%). it has the support of six active Joint Bookrunners: ABN AMRO, BNP Paribas, Commerzbank, NatWest Markets, Santander and UniCredit.

Arina Freitag, TenneT’s Chief Financial Officer, said: “Green financing aligns perfectly with our role in facilitating the backbone of a secure, reliable, and zero-carbon energy system, as our work contributes towards national and international climate goals, in particular our home markets in the Netherlands and Germany.”

Proceeds will be used to invest in eligible 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.

Further details on these projects and project selection process is set out in TenneT’s Green Financing Framework dated March 2022, for which ISS ESG has provided a Second Party Opinion to confirm the alignment with the ICMA Green Bond Principles.

With annual planned investments to grow to approximately €6 billion by 2025, TenneT is heavily investing in the energy transition in Europe. The majority of TenneT's investments are directly related to the increase in renewable energy sources. By 2030 TenneT expects to have realized approximately 38 GW of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea.