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- Amprion issues a €1 billion green dual-tranche bond.
- The bond issuance supports the expansion of a climate-neutral German electricity grid.
- The first tranche is €500 million for 7 years at 3.625% p.a., and the second is €500 million for 20 years at 4.000% p.a.
- Proceeds align with Amprion’s Green Finance Framework for sustainable projects.
Amprion has once again successfully placed a green dual-tranche bond with a total nominal value of €1 billion on the international capital market. The bond was issued under Amprion’s €9 billion debt issuance programme and saw significant demand, with the order book being several times oversubscribed.
Amprion’s regular green bond issuances have established it as a frequent issuer on the international bond market. The transmission system operator focuses on green bonds to finance necessary investments in the upgrade and expansion of a climate-neutral German electricity transmission grid.
Related Article: SEB’s Green Bond Report Explores Scaling Up Energy Transition Investments for a Just and Speedy Net-Zero Emission Goal
The green bond was issued in two tranches and is listed on the Euro MTF of the Luxembourg Stock Exchange:
- The first tranche of €500 million has a maturity of 7 years and carries a coupon of 3.625% p.a.
- The second tranche of €500 million has a maturity of 20 years and carries a coupon of 4.000% p.a.
Peter Rüth, CFO of Amprion, said,
“We are very pleased with the transaction, which reflects investor confidence in Amprion and our strategy. It is another important foundation stone for our ambitious growth and the investments aimed at implementing the energy transition in Germany. The recently-affirmed solid investment grade ratings underpin our position as a regular and reliable issuer on the international capital market. We are very well positioned here.”
Proceeds to Be Used as Set Out in the Green Finance Framework
The proceeds will be used exclusively for sustainable projects that meet the criteria of Amprion’s Green Finance Framework. The framework was developed in accordance with the international Green Bond Principles and validated by renowned ESG rating agency Sustainalytics through a second-party opinion.
Solid Investment Grade Ratings
The two rating agencies Moody’s and Fitch rate Amprion as Baa1 and BBB+, respectively, both with a stable outlook. Moody’s has assigned the newly issued green dual-tranche bond a Baa1 rating. The transaction was supported by Bayerische Landesbank, Commerzbank, DZ BANK AG, ING, Landesbank Hessen-Thüringen, Landesbank Baden-Württemberg, SEB, and UniCredit as joint lead managers.
This successful issuance highlights Amprion’s commitment to financing the energy transition and supporting the development of a sustainable electricity infrastructure in Germany.