IPPToday #217: TenneT issues US$1.5 billion green bonds to support European transmission projects
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TenneT Holding B.V., a European electricity transmission system operator (TSO), has announced the successful launch and pricing of a green bond issue of EUR1.25 billion (US$1.47 billion). The proceeds will support a portfolio of offshore and onshore transmission projects in the Netherlands and Germany.
The issue is split into two tranches: a EUR500 million (US$589.4 million) tranche with a term of 10 years and a coupon of 1.375%, and a EUR750 million (US$884.0 million) tranche with a term of 16 years and a coupon of 2.00%.
It is supported by five banks: BNP Paribas, Deutsche Bank, ING Bank, Lloyds and Rabobank.
The issue is part of TenneT's green bond program, through which the company has amassed an order book of around EUR2.5 billion (US$2.95 billion). The program was launched in March 2015, which made TenneT the first Dutch non-financial company with a euro green bonds program.
In the period up to 2019, TenneT is realizing over 7,000 MW of connection capacity for offshore wind farms in the German North Sea, transmitting electricity equivalent to the annual power consumption of approximately ten million households.
By 2023, the company expects to have realized 3,500 MW of connection capacity in the Dutch North Sea, corresponding to the annual power consumption of close to five million households. This forms part of its official designation as the offshore grid operator in the Netherlands.
TenneT's investments in offshore and onshore grid connections across the Netherlands and Germany are expected to total EUR28 billion (US$33.0 billion) over the next ten years.
Furthermore, the company is the largest corporate issuer of green debt in the Netherlands with a total of EUR6.25 billion (US$7.685 billion) of green issuances.