TenneT issues US$1.5 billion green bonds to support European transmission projects
This article is part of a daily series of IPP articles. If you want to know more about the latest power generation projects globally visit our IPP Today section. You can receive them by email on a daily basis.
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.
Country news
-
-
May 03, 2018
Financial close for 21 MW wind project in the Netherlands
Eurus Energy Group, based in Japan, and YARD ENERGY Group, a Dutch wind developer, have achieved financial close for the construction of Windpark Spui, a 21 MW wind farm located in the municipality of Korendijk in South Holland, the Netherlands.
Read more -
March 21, 2018
Vattenfall wins 750 MW in Netherlands' offshore wind tender
Vattenfall has announced that it has been awarded the permit for the Hollandse Kust Zuid offshore wind farm. To be located 22.2km off the west coast of the Netherlands, spanning a 356 km2 site, the wind farm will have a total capacity of 700-750 MW and produce renewable electricity for between 1 and 1.5 million homes.
Read more -
January 22, 2018
ING commits EUR100 million to Sustainable Investments fund
Dutch multinational banking and financial services firm ING has launched a Sustainable Investments fund, committing EUR100 million of capital to support sustainable ’scale-ups’ with a proven concept and a positive environmental impact. The OECD definition of a scale-up is a company with an average annualized return of at least 20% in the past 3 years with at least 10 employees in the beginning of the period.
Read more -
January 11, 2018
First zero-subsidy offshore wind tender held in the Netherlands
The Dutch Ministry of Economic Affairs and Climate Policy has held the country's first zero-subsidy offshore wind tender. The tender, described as a huge breakthrough by the Minister of Economic Affairs and Climate Policy, concerned sites I and II of the Hollandse Kust (Zuid) off-shore wind farm. It closed on 21 December 2017.
Read more -
January 02, 2018
Vattenfall to supply 1.5 TWh of electricity to AkzoNobel
Vattenfall has announced that it has agreed to will supply 1.5 TWh of electricity annually to AkzoNobel in the Netherlands. The new agreement concerns AkzoNobel’s chemical production sites in Delfzijl, Hengelo and Rotterdam.
Read more
