TenneT Holding B.V. (rated A3/A-) yesterday successfully priced a Green Hybrid Bond issue of EUR 1 billion with a coupon of 2.374% and a non-call period of 5.25 years. The issue will further strengthen TenneT' s balance sheet as it will receive 50% "equity credit" from the credit rating agencies. Proceeds will be used to invest in green projects in the Netherlands and Germany to connect large scale offshore wind to the onshore electricity grid and to enhance the onshore transmission capacity for renewable energy. The transaction was supported by ten banks: BNP Paribas and HSBC as joint structuring advisors and joint lead managers, Deutsche Bank and ING Bank as joint lead managers and ABN AMRO, Commerzbank, Lloyds Bank, NatWest Markets, Rabobank and SMBC Nikko as passive bookrunners.
Investing in green energy
In order to implement the sustainable energy policies of the Netherlands and Germany, drive the energy transition and carry out large-scale maintenance work on our high-voltage grids, TenneT' s annual investments are expected to grow from approximately EUR 2 to 3 billion today to approximately EUR 4 to 5 billion within the next five years.
The majority of TenneT' s investments are directly related to the increase in renewable energy sources, such as wind and solar energy. In the period up to 2030, TenneT expects to have realized approximately 28 gigawatt (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting an amount of electricity sufficient to power 38 million households for a full year.