As a way to support the development of the 1.4-GW NordLink subsea cable project, the first interconnection between Germany and Norway, the European Investment Bank (EIB) has invested €7100 million (US$114 million) in bonds. So far, the EIB last year provided €650 million (US$760 million) in loans to Tennet and Statnett in support of the subsea cable project.
Under a market hybrid bond placement, the EIB has purchased hybrid securities issued by TenneT Holding BV. The move was backed by the European Fund for Strategic Investments (EFSI) and is part of TenneT’s hybrid securities programme, initiated in 2017.
The project is being implemented by Norwegian TSO Statnett and DC Nordseekabel GmbH & Co KG, which is equally owned by TenneT and the German development bank KfW. Last summer Cable installation on the project was launched last summer and the interconnector is expected to be in operation in 2019.
