Transmission system operator Tennet has launched and priced a green bond issue of over €1bn to invest in projects in the Netherlands and Germany to connect offshore wind to the onshore power grid.
The €1.25bn is split in two tranches of €500m, with an 11-year term and coupon of 0.875%, and €750m, with a 20-year term and a coupon of 1.500%, and is supported by the banks ABN AMRO, Barclays, HSBC, NatWest Markets and SMBC Nikko.
Over the next 10 years Tennet expects to invest €35bn in offshore and onshore grid connections across the Netherlands and Germany, to drive the energy transition.
Some 80% of Tennet’s investments are related to renewables, such as wind and solar energy.
In the period up to 2030, Tennet expects to have realised approximately 25GW of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting enough electricity to power 31 million households for a full year, annually.
The latest issue makes Tennet the largest corporate green debt issuer in the Netherlands, with over €8bn issued to date.