Eurogrid GmbH, the parent company of German transmission system operator 50Hertz, has placed a EUR-750-million (USD 745.05m) green bond to secure fresh capital for the expansion of the power grid and enable the integration of more renewable energy.
The note with a term of nine years and an interest rate of 3.279% was placed with investors mainly from Great Britain, Germany, France and the Benelux countries, 50Hertz said on Thursday.
The proceeds will be used to finance on- and offshore projects such as the SuedOstLink that will boost the capacity of 50Hertz' system to transport green electricity.
With such projects, the power grid operator aims to cover the average entire consumption of electricity in its grid area within a year by 2032 with 100% renewable energies on a calculated basis. 50Hertz is the transmission system operator in northern and eastern Germany.
"This green transaction is an important cornerstone of our financing strategy and it brought our funding activities early in the year to a successful end. This is how we can drive forward the grid development that is important for the energy transition," said 50Hertz CFO Marco Nix.
This is the second green bond issued by Eurogrid. The first one was placed in 2020.
(EUR 1 = USD 0.993)
Choose your newsletter by Renewables Now. Join for free!