TenneT Holding has successfully priced a dual Tranche Green Hybrid Bond.
The bond comprises €550m with a coupon of 4.625% and a non-call period of 5.25 years and €550 million with a coupon of 4.875% and a non-call period of 8 years, respectively.
Proceeds will be used, in line with TenneT’s Green financing Framework, to invest in eligible green power transmission projects in the Netherlands and Germany.
These projects will be 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.
Arina Freitag, chief financial officer at TenneT, (pictured) said: “Our unique growth agenda of €160bn of investments in the next ten years, to meet Dutch and German national and Europe’s climate targets, is an indication of the substantial work that still needs to be done.
“For this investment agenda we need a solid capital position.
“TenneT considers hybrid capital a permanent feature of its capital structure which will support this further growth.
“Rating agencies Moody’s and Standard & Poor’s awarded the subordinated bond with 50% equity credit based on their respective methodologies.”
The transaction was supported by nine banks: ABN AMRO and Deutsche Bank as joint structuring advisers and together with BNP Paribas and ING Bank acting as joint lead managers.
Commerzbank, Rabobank, Santander, SMBC and UniCredit acted as passive bookrunners.