KfW concludes minority investment in 50Hertz

German state-owned bank KfW is now the owner of a 20% stake in transmission system operator (TSO) 50Hertz Transmission GmbH after the closing of a couple of previously announced transactions.

As unveiled last month, Belgian sector player Elia System Operator SA/NV exercised its pre-emption right on the 20% stake in Eurogrid International, which is the holding company of 50Hertz. Elia did so just to be able to sell the very same stake to the German lender.

Having increased its 50Hertz stake to 80% from 60% in April for about EUR 989 million (USD 1.14bn), the Belgian TSO did not consider holding 100% of 50Hertz to be necessary from a strategic and financial perspective, it explained previously.

Elia now intends to refinance the bridge loan that temporarily financed the previous purchase of a 20% stake in 50Hertz. It confirmed its plans to finance the transaction by issuing long-term debt instruments, including EUR 700 million worth of hybrid bonds and EUR 300 million of unsubordinated senior bonds.

50Hertz Transmission is a TSO active in the North and the East of Germany, one of four that operates in the country. The company is responsible for the transportation of the wind power generated by plants in the German Baltic Sea to the onshore power grid.

(EUR 1.0 = USD 1.156)

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