TenneT is to explore the possibility of tapping into the capital markets for the funding of its German operations.
The fast acceleration of the company’s grid expansion, onshore and offshore, requires “unprecedented investments”, it said.
TenneT’s recently announced 10-year investment plan in the Netherlands and Germany for the period 2024-2033 adds up to €60bn, which is expected to be funded primarily through debt but also requires equity.
As a potential solution for the equity need in respect of its German operations, TenneT has explored the possibility of a full sale of the arm to Kreditanstalt fur Wiederaufbau (KfW), acting on behalf of Berlin.
Although extensive discussions have taken place for over more than a year, unfortunately no agreement could be reached so far.
TenneT, in close cooperation with the Dutch state as its sole shareholder, will therefore explore alternative structural solutions.
These could include preparations for potential investment in TenneT Germany by private investors or a potential listing of TenneT Germany to raise equity in the public capital markets.
Meanwhile, as previously announced, the Dutch state has provided TenneT a €25bn shareholder loan, safeguarding the financing of its planned investments in the Netherlands and Germany for 2024/2025.
TenneT also successfully tapped into the hybrid market recently with a dual tranche €1.1bn green hybrid bond.
TenneT thus remains fully committed to executing its large investment plan in both countries, to provide highly needed transmission capacity both onshore and offshore.