TenneT launches inaugural green hybrid bond of EUR 1bn

Dutch transmission system operator (TSO) TenneT Holding BV said on Wednesday it has launched and priced a EUR-1-billion (USD 1.07bn) green hybrid bond that is the first of its kind.

The company plans to use the proceeds to finance high-voltage grid connections to offshore wind farms. Through 2019, it expects to realise more than 7 GW of connection capacity for such plants in the German sector of the North Sea and an additional 3.5 GW in the Dutch sector of the North Sea by 2023. Overall, TenneT expects to invest between EUR 9 billion and EUR 11 billion in offshore wind projects across the Netherlands and Germany over the next 10 years.

The bond was launched with a coupon of 2.995% and a non-call period of seven years. Barclays and Deutsche Bank are acting as joint structuring advisors and joint bookrunners, while BNP Paribas, HSBC Bank and ING Bank are joint bookrunners.

“It [the bond] provides an excellent way to finance our green investment portfolio, which facilitates the transition to renewable energy, while supporting our credit ratings at the same time," said Otto Jager, TenneT’s CFO.

(EUR 1.0 = USD 1.074)

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