Three Institutional Investors Back TenneT’s German Unit in EUR 9.5 Billion Deal

TenneT Holding has reached an agreement with APG (acting on behalf of pension fund ABP), Norges Bank Investment Management (NBIM), and the Singapore sovereign wealth fund GIC to invest a total of EUR 9.5 billion in the German transmission system operator (TSO).

The three institutional investors are set to acquire around 46 per cent of the shares, with the remaining 54 per cent retained by TenneT Holding.

With this transaction, TenneT and its sole shareholder, the Dutch state, secure the equity requirement for the expansion of TenneT Germany’s high-voltage grid for the years to come.

Completion remains subject to customary conditions, including regulatory approvals, and is expected in the first half of 2026.

“With this financing solution, TenneT remains Europe’s leading crossborder TSO, a key player in system integration, offshore wind connections and market innovation. This announcement marks the end of an intense period during which we have separated our Dutch and German operations within the group, implemented a new funding structure for TenneT Netherlands and secured equity funding for TenneT Germany,” said Manon van Beek, CEO of TenneT Holding.

The institutions will invest up to EUR 9.5 billion in primary equity, contributed partly at initial close and partly over the following years.

The deal will also include an enterprise value of TenneT Germany of approximately EUR 40 billion on a cash and debt-free basis, implying an EV to regulated asset base multiple of 1.09, with a pre-money equity value of EUR 10.4 billion as of 31 December 2025.

According to TenneT Holding, this transaction will deepen European integration in the energy market and strengthen Dutch, German, and European economies. TenneT Netherlands and TenneT Germany will continue to cooperate on strategic areas, such as the 2 GW programme, designed to roll out the offshore grid, thereby preserving mutually beneficial synergies, said TenneT Holding.

TenneT has confirmed that the German state has shown interest in a potential investment in TenneT Germany, with upcoming discussions with KfW to explore participation alongside TenneT and the institutional investors.

In April, TenneT announced a new funding structure whereby TenneT Netherlands will raise the financing required for the Dutch TSO business and TenneT Germany for the German TSO business.

The first step in a stand-alone financing structure for TenneT Germany has been the signing of a EUR 12 billion Revolving Credit Facility (RCF) with BNP Paribas, Deutsche Bank, ING, and UniCredit as underwriters.

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