Dutch-German grid operator TenneT has launched and priced a senior green bond issue of €3bn.
Proceeds will, in line with previous issues, 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.
It will also be used for 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.
The transaction was split in four tranches of €650m, for a six year term, €500m, for a nine and a half year term €1bn, for a 12 year term and €850m for a term of 20.
It received support of six active joint bookrunners: ABN AMRO, Deutsche Bank, HSBC, ING, Rabobank and SMBC.
Arina Freitag (pictured), CFO of TenneT, said: “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.”
TenneT’s 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 10 years, TenneT will build 4000 km of additional onshore grid connections in Germany and approximately 1250 km onshore grid connections in the Netherlands.
Around 2030 TenneT expects to have realised approximately 40GW of installed connection capacity for offshore wind farms in the Dutch and German parts of the North Sea.