TenneT seeks fresh funds through EUR-1.8bn green bond sale

Dutch transmission grid operator (TSO) TenneT is selling EUR 1.8 billion (USD 2.19bn) worth of green bonds in a triple-tranche placement aimed at financing interconnection projects at home and in Germany.

The offering, which TenneT says is the largest ever and first green triple-tranche eurobond sale, consists of two EUR-650-million bonds maturing in 6.5 years and 20 years and bearing a coupon of 0.125% and 1.125%, respectively. The third one is a EUR-500-million bond with a 10-year term and a coupon of 0.500%.

The deal has attracted the interest of investors from 20 European countries, with a bag of orders totalling EUR 4 billion.

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.

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

The Dutch TSO expects to have around 28 GW of connection capacity for offshore wind farms in Dutch and German waters by 2030. Its plan is to invest between EUR 5 billion and EUR 6 billion within the next five years.

(EUR 1.0 = USD 1.217)

Choose your newsletter by Renewables Now. Join for free!