De Brauw acted as lead counsel to grid operator TenneT in its successful issue of a EUR 3 billion Green Bond. The transaction was split into four tranches of EUR 650 million, EUR 500 million, EUR 1,000 million, and EUR 850 million respectively. The issue received support of six active joint bookrunners, namely ABN AMRO, Deutsche Bank, HSBC, ING, Rabobank and SMBC.
As with TenneT's previous Green Bond issues, proceeds will be used to invest in eligible green power transmission projects in the Netherlands and Germany. These projects focus on connecting large-scale offshore wind farms to the onshore electricity grid and on investing in the onshore transmission grid with the main objective to increase the transmission of renewable energy. Arina Freitag, TenneT's Chief Financial Officer, said: "This decade will require record investments in security of supply and the expansion of renewables in Germany, the Netherlands and Europe. This is the backbone for the energy transition and a key success factor for our industries. As one of the biggest investors in Europe, we are deeply committed to make an important contribution to this profound transformation. This is also reflected in our financial strategy: Green Finance has been part of our DNA for years and despite the current challenges it will play a growing role in our company strategy."
The transaction drew strong investor interest, with orderbooks reaching over EUR 6 billion at the time of setting final terms. The issue follows TenneT's EUR 3.85 billion Green Bond issue of earlier this year, and strengthens TenneT's status as the largest corporate EUR green debt issuer.