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.
|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|
|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)