TenneT Raises €1.1 Billion Through Green Hybrid Bond Issuance for Renewable Energy Projects

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TenneT Holding B.V. successfully priced a dual Tranche Green Hybrid Bond of EUR 550 million with a coupon of 4.625% and a non-call period of 5.25 years and EUR 550 million with a coupon of 4.875% and a non-call period of 8 years, respectively.

Investors show interest with the issue being more than six times oversubscribed at the peak 

  • Refinancing of the Hybrid Green Bond issued in 2017
  • Among the largest green debt issuers globally, with over EUR 20 billion issued  

Arina Freitag, CFO TenneT, commented: “Our unique growth agenda of EUR 160 billion of investments in the next ten years, to meet Dutch and German national and Europe’s climate targets, is an indication of the substantial work that still needs to be done. For this investment agenda we need a solid capital position. TenneT considers hybrid capital a permanent feature of its capital structure which will support this further growth. Rating agencies Moody’s and Standard & Poor’s awarded the subordinated bond with 50% equity credit based on their respective methodologies.” 

Proceeds will be used, in line with TenneT’s Green financing Framework, to invest in eligible green power transmission projects in the Netherlands and Germany focused on connecting large-scale offshore wind farms to the onshore electricity grid and investments in the onshore transmission grid with the main objective to increase the transmission of renewable energy. Further details on these projects and the project selection process are set out in TenneT’s Green Financing Framework, for which ISS ESG has provided a Second Party Opinion. In 2015 TenneT was the first Dutch corporate to issue a Green Bond, since then the company has issued over EUR 20 billion of Green Debt to finance the energy transition.

Related Article: ESMA Sets Out Rules for External Reviewers of EU Green Bonds

TenneT is one of Europe’s largest investors in national and cross-border electricity transmission capacity on land and at sea, bringing together the Northwest European energy markets and efficiently unlocking large-scale renewable electricity sources. As TenneT is committed to achieving a reliable, climate-neutral and affordable energy system by 2045, the company collaborates with a wide range of partners in the energy market to develop and apply new, smart technologies and to contribute to the energy transition in the future.

The transaction was supported by nine banks: ABN AMRO and Deutsche Bank as joint structuring advisers and together with BNP Paribas and ING Bank acting as joint lead managers. Commerzbank, Rabobank, Santander, SMBC and UniCredit acted as passive bookrunners.