TenneT to back 2.6 GW offshore links with EUR-1bn green bond

Transmission system operator (TSO) TenneT Holding BV has issued a EUR-1-billion (USD 1.09bn) green bond to finance over 2.6 GW of offshore wind transmission capacity in German waters.

The company said Thursday its inaugural green bond has been two times oversubscribed. It included two tranches of EUR 500 million each, with terms of six and 12 years and respective coupons of 0.875% and 1.750%. An important investor was German development bank KfW.

“I expect that this will be the first of a series of Green Bond issues for TenneT,” commented CFO Otto Jager.

The proceeds will go to finance the 800-MW DolWin1 and and 916-MW DolWin2 offshore projects, planned for commissioning in 2015, and the 900-MW DolWin3 connection, which will be commissioned in 2017.

TenneT expects its investments in offshore wind across the Netherlands and Germany over the next 10 years to range from EUR 7 billion to EUR 9 billion. By 2019, the company will realise over 7,000 MW of offshore wind transmission projects in the German part of the North Sea. After that, by 2023, it will complete 3,500 MW of connection capacity in the Dutch sector.

The TSO’s CFO noted that future TenneT green bonds could finance the Dutch offshore wind links. Earlier this month it announced the launch of its scheme for green bond issuance in euro, saying it "could eventually evolve into a multi-billion issuance programme".

(EUR 1 = USD 1.094)

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