Tennet Holding BV this week successfully launched and priced a senior green bond issue of €3.85 billion ($4.06 billion), split into four tranches, of €1.25 billion (term: 4.5 years, coupon 1.625%); €1 billion (7.5 years and 2.125%); €750 million (11 years, 2.375%); and €850 million (20 years, 2.75%) with the support of six active joint bookrunners: ABN Amro, BNP Paribas, Commerzbank, NatWest Markets, Santander, and UniCredit.
Arina Freitag, Tennet’s chief financial officer, 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.”
The 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 the project selection process are set out in Tennet’s green financing framework, dated March 2022, for which ISS ESG has provided a second party opinion to confirm alignment with the ICMA Green Bond Principles.
Investing in renewables
With annual planned investments expected to grow to at least €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 while 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 GW of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea.
