Eurogrid, the parent of German grid operator 50Hertz, has placed over €1bn in green bonds to be used to invest in further grid expansion and upgrades.
Eurogrid has secured financing totalling €1.5bn for further grid expansion necessary for Germany’s energy transition with its third and fourth green bonds.
This is the highest amount of bonds in Eurogrid’s corporate history.
Selected projects on land and at sea will be financed, which can increase the integration and transport of additional quantities of renewable electricity.
The corporate bonds have a volume of €700m (five-year term, interest rate 3.598%) and €800m (10-year term, interest rate 3.915%).
They will be issued on the regulated market in Luxembourg with the support of Banco Santander, Mizuho Bank, Rabobank and UniCredit Bank from among Eurogrid’s core banks.
Marco Nix, CFO of 50Hertz, said: “Confidence in the sustainable corporate strategy of 50Hertz and the Elia Group as the main shareholder of Eurogrid remains high on the financial markets.
“The funds now secured from these green bonds will be used to finance a significant portion of our investment volume this year.”
The projects financed under these green bonds are in line with the EU’s action plan to mitigate climate change and contribute to 50Hertz’s corporate strategy of “100 percent by 2032”.
It means that 100% of the electricity consumption in the grid area in 2032 can be covered by renewable energy over the course of the year.
The green bond complies with the principles of the International Capital Markets Association (ICMA).