TenneT Holding B.V. has successfully set the price for a dual Tranche Green Hybrid Bond of EUR 550 million with an interest rate of 4.625% and a non-call period of 5.25 years, and EUR 550 million with an interest rate of 4.875% and a non-call period of 8 years, respectively.
Investors have shown a lot of interest in the offering, with the demand being more than six times higher than the actual amount
- This is a refinancing of the Hybrid Green Bond that was issued in 2017
- TenneT is one of the largest issuers of green debt globally, with over EUR 20 billion issued
Arina Freitag, CFO at TenneT, stated:Our unique plan to invest EUR 160 billion in the next ten years to meet climate targets in the Netherlands, Germany, and Europe shows that there is still a lot of work to be done. We need a strong capital position for this investment plan. TenneT views hybrid capital as a permanent part of its capital structure to support this further growth. Rating agencies Moody’s and Standard & Poor’s have given the subordinated bond 50% equity credit based on their respective methodologies.”
The money raised will be used, in accordance with TenneT’s Green financing Framework, to invest in eligible green power transmission projects in the Netherlands and Germany that focus on connecting large-scale offshore wind farms to the onshore electricity grid and investments in the onshore transmission grid with the main goal of increasing the transmission of renewable energy. Further details on these projects and the project selection process are outlined in TenneT’s Green Financing Framework, for which ISS ESG has provided a Second Party Opinion. In 2015, TenneT was the first Dutch company to issue a Green Bond, and since then, the company has issued over EUR 20 billion of Green Debt to finance the energy transition.
TenneT is one of the biggest investors in national and cross-border electricity transmission capacity on land and at sea in Europe, bringing together the energy markets in Northwest Europe and effectively harnessing large-scale renewable electricity sources. The company is committed to achieving a reliable, climate-neutral, and affordable energy system by 2045, and collaborates with a wide range of partners in the energy market to develop and apply new, smart technologies and contribute to the energy transition in the future.
Nine banks supported the transaction: ABN AMRO and Deutsche Bank as joint structuring advisers, along with BNP Paribas and ING Bank as joint lead managers. Commerzbank, Rabobank, Santander, SMBC, and UniCredit acted as passive bookrunners.
