TenneT launched and priced the first-ever green hybrid bond in an amount of EUR 1 billion on 29 March.
The bond was launched with a coupon of 2.995% and a non-call period of 7 years with the support of five banks: Barclays and Deutsche Bank as (joint structuring advisors and joint bookrunners) and BNP Paribas, HSBC Bank and ING Bank as (joint bookrunners).
Otto Jager, TenneT’s Chief Financial Officer, said: “Today’s inaugural Green Hybrid Bond issue demonstrates our ongoing commitment to green financing instruments and the further development of the green financing market. It provides an excellent way to finance our green investment portfolio, which facilitates the transition to renewable energy, while supporting our credit ratings at the same time.”
TenneT’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total EUR 9 to 11 billion over the next 10 years.
In the period up to 2019, the transmission system operator will build over 7GW of connection capacity for offshore wind farms in the German sector of the North Sea, transmitting electricity equivalent to the annual power consumption of approx. 7 million households.
In the Dutch sector of the North Sea, TenneT expects to have realised 3.5GW of connection capacity by 2023, corresponding to the annual power consumption of close to 3.5 million households.