TenneT Holding B.V. (issuer ratings A3/A-, stable outlook) yesterday successfully launched and priced a senior Green Bond issue of EUR 3.85 billion, split in four tranches of EUR 1,250 million (term: 4.5 years, coupon 1.625%), EUR 1,000 million (term: 7.5 years, coupon 2.125%), EUR 750 million (term: 11 years, coupon 2.375%) and EUR 850 million (term: 20 years, coupon 2.750%) with the support of 6 active Joint Bookrunners: ABN AMRO, BNP Paribas, Commerzbank, NatWest Markets, Santander and UniCredit.
Arina Freitag, TenneT’s Chief Financial Offier said: “Green financing aligns perfectly with our role in facilitating the backbone of a secure, reliable, and zero-carbon energy system, as our work contributes towards national and international climate goals, in particular our home markets in the Netherlands and Germany.”
Proceeds will be used 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 project selection process is set out in TenneT’s Green Financing Framework dated March 2022, for which ISS ESG has provided a Second Party Opinion to confirm the alignment with the ICMA Green Bond Principles.
Investing in green energy
With annual planned investments expected to grow to at least EUR 6 billion by 2025, TenneT is heavily investing in the energy transition in Europe, making an important contribution to meet national climate targets and to connect everyone to a brighter energy future, whilst maintaining a solid financial position.
The majority of TenneT's investments are directly related to the increase in renewable energy sources, such as wind and solar energy. Around 2030 TenneT expects to have realized at least 38 gigawatt (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea.
