Dutch transmission grid operator (TSO) TenneT Holding BV has issued a green hybrid bond worth EUR 1 billion (USD 1.14bn), seeking to finance interconnections of renewable energy projects.
The hybrid green bond bears a coupon of 2.374% and has a non-call period of 5.25 years. Its offering, aimed at strengthening Tennet’ s balance sheet, was met with “keen” interest among inventors, TenneT said on Thursday. The placement was 2.5 times oversubscribed.
The Dutch TSO will allocate the raised funds to connect offshore wind parks to the Dutch and German onshore power grids and to enhance the onshore transmission capacity for renewable energy. The company projects its annual investments in those two countries will be between EUR 4 billion and EUR 5 billion within the next five years, needed to carry out large-scale maintenance work on its high-voltage grids as installed renewables capacity grows.
The issue will receive 50% “equity credit” from credit rating agencies. It was led by BNP Paribas (EPA:BNP), HSBC (LON:HSBA), Deutsche Bank (ETR:DBK) and ING Bank (FRA:6GF) and received support from six more banks.
Source: Renewables Now