TenneT places EUR-1bn green bond to fund new interconnecion projects

Dutch transmission grid operator (TSO) TenneT Holding BV has placed a EUR-1-billion (USD 1.16bn) senior green bond that will provide it with funds to finance transmission projects in the Netherlands and Germany.

The offering has attracted strong market reception and the company has accumulated an order book of roughly EUR 2 billion, it said in a press release on Wednesday.

The bonds mature in 13.6 years and bear a coupon of 0.875%.

TenneT will allocate the fresh funds for investments in green energy projects to connect large-scale offshore wind parks to the mainland power network and to expand the onshore transmission capacity available for renewable energy, both in the Netherlands and Germany. The TSO expects to have around 28 GW of connection capacity for offshore wind farms in Dutch and German waters of the North Sea by 2030. Its plan is to invest between EUR 5 billion and EUR 6 billion within the next five years.

The Dutch firm noted that including the latest offering, it has issued around EUR 13 billion worth of green debt across different formats during the past six years.

The transaction is supported by six joint bookrunners, among which are BNP Paribas, Deutsche Bank and HSBC.

(EUR 1.0 = USD 0.861)

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