Today TenneT Holding B.V. (rated A3/A- by Moody’s/Standard & Poor’s) successfully priced a dual Tranche Green Hybrid Bond of EUR 550 million with a coupon of 4.625% and a non-call period of 5.25 years and EUR 550 million with a coupon of 4.875% and a non-call period of 8 years, respectively.
Arina Freitag, CFO TenneT commented “Our unique growth agenda of EUR 160 billion of investments in the next ten years, to meet Dutch and German national and Europe’s climate targets, is an indication of the substantial work that still needs to be done. For this investment agenda we need a solid capital position. TenneT considers hybrid capital a permanent feature of its capital structure which will support this further growth. Rating agencies Moody’s and Standard & Poor’s awarded the subordinated bond with 50% equity credit based on their respective methodologies.”
Proceeds will be used, in line with TenneT’s Green financing Framework, to invest in eligible green power transmission projects in the Netherlands and Germany focused on connecting large-scale offshore wind farms to the onshore electricity grid and investments in the onshore transmission grid with the main objective to increase the transmission of renewable energy. Further details on these projects and the project selection process are set out in TenneT’s Green Financing Framework, for which ISS ESG has provided a Second Party Opinion. In 2015 TenneT was the first Dutch corporate to issue a Green Bond, since then the company has issued over EUR 20 billion of Green Debt to finance the energy transition.
TenneT is one of Europe’s largest investors in national and cross-border electricity transmission capacity on land and at sea, bringing together the Northwest European energy markets and efficiently unlocking large-scale renewable electricity sources. As TenneT is committed to achieving a reliable, climate-neutral and affordable energy system by 2045, the company collaborates with a wide range of partners in the energy market to develop and apply new, smart technologies and to contribute to the energy transition in the future.
The transaction was supported by nine banks: ABN AMRO and Deutsche Bank as joint structuring advisers and together with BNP Paribas and ING Bank acting as joint lead managers. Commerzbank, Rabobank, Santander, SMBC and UniCredit acted as passive bookrunners
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For more information please contact TenneT Media Relations (+31 26 373 2600 ), press@tennet.eu or www.tennet.eu
TenneT is a leading European grid operator. We are committed to providing a secure and reliable supply of electricity 24 hours a day, 365 days a year, while helping to drive the energy transition in our pursuit of a brighter energy future – more sustainable, reliable and affordable than ever before. In our role as the first cross-border Transmission System Operator (TSO) we design, build, maintain and operate over 25,000 kilometres of high-voltage electricity grid in the Netherlands and large parts of Germany, and facilitate the European energy market through our 17 interconnectors to neighbouring countries. We are one of the largest investors in national and international onshore and offshore electricity grids, with a turnover of EUR 9.2 billion and a total asset value of EUR 45 billion. Every day our 8,300 employees take ownership, show courage and make and maintain connections to ensure that the supply and demand of electricity is balanced for over 43 million people.
Lighting the way ahead together