The bond has a denomination of €100 with a duration of 10 years and a coupon of 1.875 %. The issuance was done via Bourse Luxembourg where the bond will also be traded. This bond emission is the second one in the companies’ history. In 2010 Eurogrid had already issued a bond, but today this could take place under different circumstances and in a more attractive interest rate environment compared to 2010.
Udo Giegerich, CFO at 50Hertz, stated:
"Instruments like such bonds are the cornerstones of our long term and efficient corporate financing. They are needed for the huge investments that lie ahead of us."
The company is planning to invest around 5.4 billion Euros during the next decade. The money goes into the development of the transmission grid including offshore wind park connections.
With over 900 collaborators, 50Hertz handles the operation and the expansion of the transmission network. Furthermore, the company is responsible for the management of the overall electrical system throughout the German Länder of Berlin, Brandenburg, Hamburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia.
As transmission system operator active in the Central European market, 50Hertz is responsible for the secure integration of renewable energies, the development of the European electricity market and for maintaining a high level of security of supply. Since 2010, Belgian grid operator Elia and Australian infrastructure fund IFM Investors are shareholders of 50Hertz, holding stakes of 60% and 40% respectively.