TenneT has secured a €1bn green bond to fund the build out of high-voltage grid connections for offshore wind farms.
The Dutch-German transmission operator said its first-ever green bond has a coupon of just shy of 3% and a non-call period of seven years.
A quintet of banks including Barclays, Deutsche Bank, BNP Paribas, HSBC Bank and ING Bank stumped up the cash.
TenneT chief financial officer Otto Jager said the bond shows the system operator’s commitment to renewables financing.
“It provides an excellent way to finance our green investment portfolio, which facilitates the transition to renewable energy, while supporting our credit ratings at the same time,” he said.
TenneT’s investments in German and Dutch offshore wind is expected to reach up to €11bn over the next decade.
Some 7GW of offshore wind capacity in the German North Sea is being worked on up to 2019, it added, with a further 3.5GW of capacity of the Netherlands by 2023.
Image: BorWin 2 (TenneT)
