TenneT completes EUR-500m US green bond placement

Author: Images Money. License: Creative Commons

January 25 (Renewables Now) - Dutch transmission grid operator (TSO) TenneT on Thursday announced the closing of its maiden Euro-denominated green US private placement (USPP) of green bonds, reaping some EUR 500 million (USD 565.1m).

The placement received almost EUR 1 billion of subscriptions in its three tranches, attracting the interest of, among others, US life insurance and institutional investors not part of Tennet’s investor base. The raised funds will go to support the TSO’s investments in offshore and onshore grid connections, which in the Netherlands and Germany are seen at EUR 28 billion over the next 10 years. According to its estimates, the company will have realised 11 GW of connection capacity for offshore wind farms in the German part of the North Sea by 2027 and some 9.6 GW of capacity in the Dutch sector of the North Sea by 2030.

The following table contains information about each tranche of the placement:

Amount Maturity Coupon
EUR 160m 10 years 1.61%
EUR 295m 12 years 1.83%
EUR 45m 15 years 2.01%

“TenneT's first Green USPP issuance demonstrates TenneT's ability to diversify its financing sources and investor base to carry out our substantial investment plans,” said CFO Otto Jager.

Barclays and NatWest Markets acted as joint placement agents of the transaction.

(EUR 1.0 = USD 1.130)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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