German transmission system operator 50Hertz has been issued a second green bond worth €750m which will permit the further grid expansion necessary for the energy transition.
The bond will finance selected projects on and offshore, such as the SuedOstLink, which will significantly increase the integration and transportation capacities for renewable energies in 50Hertz’ system.
It has a term of nine years, with an interest rate of 3.279 percent and will be issued on the regulated market in Luxemburg with the support of Banco Santander, Mizuho Bank, Rabobank and UniCredit Bank from the circle of Eurogrid’s core banks on 5 September.
50Hertz said that the investors mainly come from the UK, Germany, France and the Benelux countries.
It added that the projects financed by the green bond will also support the operator’s 100% by 2032 goal, which seeks to cover the average entire consumption of power in our grid area within a year by 2032 with 100% renewable energies on a calculated basis.
The Green Bond complies with the principles of the International Capital Markets Association, 50Hertz said.
An independent evaluation of the Green Bond Framework was carried out by the second party opinion provider imug Rating GmbH, Hanover, it added.
50Hertz Chief Financial Officer Marco Nix said: “With proceeds of this second Green Bond in our company’s history, we are securing the necessary investments in the grid infrastructure over the next months.
“Despite the weak and challenging financial market situation, investors’ solid appetite for an investment in our company shows their high level of trust in our sustainability strategy and investment plans.
“This green transaction is an important cornerstone of our financing strategy and it brought our funding activities early in the year to a successful end.
“This is how we can drive forward the grid development that is important for the energy transition.”