The €1bn dual tranche (6 and 12 year) bond issue is the first one for the national electricity transmission system operator of Netherlands.
The securities are each sized at €500m and are supported by five banks such as HSBC Bank, ING Bank, Royal Bank of Scotland, Lloyds TSB Bank and Rabobank.
The proceeds will be used to finance the high voltage direct current (HVDC) transmission links DolWin1, DolWin2 and DolWin3, which have power generation capacities of 800MW, 916MW and 900MW respectively.
While the first two transmission projects are likely to be operational within this year, commissioning of the DolWin3 has been scheduled for 2017.
TenneT chief financial officer Otto Jager said: "Today’s inaugural Green Bond issue demonstrates our commitment to working with our stakeholders to continually improve and innovate in our approach to Corporate Social Responsibility while at the same time achieving attractive long-term financing to support investment in three offshore wind transmission projects in Germany."
This is claimed to be the first in a series of Green Bond issues for TenneT, which intends to invest €7bn to €9bn for offshore wind power projects across the Netherlands and Germany over the next 10 years.
Image: TenneT’s offshore converter platform DolWin beta. Photo: courtesy of TenneT Holding B.V.
