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Tennet issues EUR-1.25bn green bond for offshore wind links

Source: TenneT Holding B.V.

May 23 (Renewables Now) - Dutch transmission system operator (TSO) Tennet Holding BV said on Monday it has launched and priced a EUR-1.25-billion (USD 1.06bn) green bond to fund offshore wind transmission projects.

The bonds were issued in two separate tranches of EUR 500 million and EUR 750 million, respectively. The EUR 500-million bond has a 10-year term and bears a coupon of 1.375%, while the larger issue is for a term of 16 years and has a coupon of 2%. The bonds were issued with the support of BNP Paribas (EPA:BNP), Deutsche Bank (FRA:DBK), ING Bank, Lloyds Banking Group (LON:LLOY) and Rabobank.

Under its Green Bonds Framework, Tennet aims to raise funds for developing high voltage direct current (HVDC) links for a portfolio of offshore wind projects. The portfolio currently includes nine projects in Germany and two in the Netherlands (Borssele Alpha and Borssele Beta). More details about the schemes can be seen in the table.

Project Capacity (MW) Commissioning
DolWin1, 165 km 800 2015
DolWin2, 135 km 916 2016
DolWin3, 160 km 900 2018
BorWin3, 160 km 900 2019
SylWin1, 205 km 864 2015
BorWin2, 200 km 800 2015
BorWin1, 200 km 400 2010
HelWin1, 130km 576 2015
HelWin2, 130km 690 2015
Borssele Alpha, 60km 700 2019
Borssele Beta, 66km 700 2020

The TSO has issued EUR 6.25 billion worth of green bonds up to now and says it is the largest corporate issuer of green debt in the Netherlands. It estimates it will spend between EUR 28 billion on offshore and onshore grid connections projects across the Netherlands and Germany over the next 10 years.

Tennet expects to reach more than 7 GW of connection capacity for offshore wind farms in the German part of the North Sea by next year. By 2023, it will complete also 3.5 GW of connection capacity in the Dutch sector of the North Sea.

(USD 1.0 = EUR 0.853)

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Veselina Petrova is one of SeeNews Renewables 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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