German state-owned bank KfW has acquired a 20% stake in transmission system operator 50Hertz after the closing of a couple of transactions announced last month.
KfW, with the close of these transactions, replaces Australian infrastructure fund IFM as shareholder in Eurogrid, the 50Hertz holding company.
The deal is expected to end interest in the TSO from State Grid Corp of China.
After increasing its 50Hertz stake to 80% from 60% in April for about €976m, Elia now intends to refinance the bridge loan that temporarily financed the purchase of a 20% stake in 50Hertz.
It confirmed its plans to finance the transaction by issuing long-term debt instruments, including €700m worth of hybrid bonds and €300m of unsubordinated senior bonds.
TSO 50Hertz is one of Germany’s four TSOs and is active in the north and the east of Germany.
Image: Pixabay
KfW takes 50Hertz stake
By EBS