TenneT reinforces its status as the largest green bond issuer in Europe with a new €3 billion issue.
A renewed success
TenneT says the transaction is divided into four tranches of €650 million, €500 million, €1000 million and €850 million. The terms are 6 years, 9.5 years, 12 years and 20 years respectively. Finally, the coupons are 3.875%, 4.250%, 4.500% and 4.750% respectively.
TenneT is supported by ABN AMRO, Deutsche Bank, HSBC, ING, Rabobank and SMBC. Thus, Arina Freitag, CFO of TenneT, states:
“This decade will require record investments in security of supply and expansion of renewable energy in Germany, the Netherlands and Europe. It is the backbone of the energy transition and a key success factor for our industries. As one of the largest investors in Europe, we are deeply committed to making a significant contribution to this profound transformation. This is also reflected in our financial strategy.
Green finance will play an increasing role in banking strategy in the future.
Increased connection capacities
The proceeds will be used to invest in green energy transmission projects in the Netherlands and Germany. The projects will focus on connecting large-scale offshore wind farms to the onshore power grid. In addition, they will be involved in onshore transmission investments aimed at increasing the transmission of renewable energy.
In the next few years, TenneT will build 4,000 kilometers of terrestrial network connections in Germany and 1,250 kilometers in the Netherlands. By 2030, the company plans to achieve 40GW of installed connection capacity for offshore wind farms. The company focuses in particular on the Dutch and German parts of the North Sea.
