TenneT Holding B.V. (rated A3/A-) today successfully launched and priced the first-ever green hybrid bond, in an amount of EUR 1 billion with a coupon of 2.995% and a non-call period of 7 years with the support of five banks: Barclays and Deutsche Bank as (joint structuring advisors and joint bookrunners) and BNP Paribas, HSBC Bank and ING Bank as (joint bookrunners). The hybrid bond has received an instrument rating of Baa3 and BB+ by Moody’s and S&P respectively.
Otto Jager, TenneT’s Chief Financial Officer, said: “Today’s inaugural Green Hybrid Bond issue demonstrates our ongoing commitment to green financing instruments and the further development of the green financing market. It provides an excellent way to finance our green investment portfolio, which facilitates the transition to renewable energy, while supporting our credit ratings at the same time.”
Investing in green energy
TenneT’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total EUR 9 to 11 billion over the next 10 years. In the period up to 2019, TenneT is realizing over 7,000 megawatts (MW) of connection capacity for offshore wind farms in the German sector of the North Sea, transmitting electricity equivalent to the annual power consumption of approx. 7 million households. By 2023, TenneT expects to have realized 3,500 MW of connection capacity in the Dutch sector of the North Sea, corresponding to the annual power consumption of close to 3.5 million households.