TenneT Issues EUR 500 Million Green Bond

Transmission systems operator TenneT Holding B.V. has issued a new, EUR 500 million Green Bond, bringing its total long-term debt in green format to EUR 3 billion.

SylWin 1. Source: Siemens

TenneT launched and priced the 17-year Green Bond issue with a coupon of 1.25% with the support of three banks, Lloyds Bank, Rabobank and Royal Bank of Scotland.

The company will use the funds to invest in the transmission of renewable electricity from offshore wind farms to the onshore electricity grid.

The proceeds from the issue will go towards the 800MW DolWin1 and the 864MW SylWin 1 HVDC links, both commissioned in 2015, as well as the 916MW DolWin2 HVDC link, commissioned in 2016.

TenneT will also finance the two projects under construction with the Green Bond issue, the 900MW DolWin3 and the 900MW BorWin3, scheduled for commissioning in 2017 and 2019, respectively.

The TSO’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total EUR 8 to 10 billion over the next 10 years.

In the period up to 2019, TenneT is realizing over 7,000MW of connection capacity for offshore wind farms in the German sector of the North Sea.

By 2023, the TSO expects to have realized 3,500MW of connection capacity in the Dutch sector of the North Sea.

This is the third time TenneT has issued Green Bond since May 2015, when the TSO floated its first EUR 1 billion issue. The second EUR 1 billion Green Bond was launched in June 2016.

TenneT also launched a EUR 500 million Green Schuldschein, a type of privately-placed German debt similar to a bond, in May 2016.