TenneT today announced the launch of a Green Bonds issuance programme and an associated Green Bonds Framework. This is the first time that a Dutch non-financial company is putting a green bond framework in place to prepare for euro green bond issuance.
The announcement relates to the issuance of Green Bonds for investments in the transmission of renewable electricity from offshore wind farms to the onshore electricity grid.
“By launching a Green Bonds programme, TenneT demonstrates its continuing commitment to rank among the leading TSOs in Europe in the area of Corporate Social Responsibility,” says TenneT CFO Otto Jager . “As this could eventually evolve into a multi-billion issuance programme, we are giving the market for Green Bonds a substantial boost to encourage institutional investments in the European energy transition at market-competitive cost.”
TenneT’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total EUR 7 to 9 billion over the next 10 years. In the period up to 2019, TenneT is realizing over 7,000 megawatts (MW) of connection capacity for offshore wind farms in the German sector of the North Sea. By 2023, the TSO expects to have realized 3,500 MW of connection capacity in the Dutch sector of the North Sea.
TenneT also published a Green Bonds Framework which will serve as a structure for verifying the sustainability quality (i.e. the social and environmental added value) of the projects to be financed through the issuance of Green Bonds. The Framework was prepared in collaboration with oekom Research AG, who will provide a second party opinion in relation to a potential upcoming Green Bond, and HSBC Bank plc, acting as Green Sustainability Bond Advisor. The second party opinion is available at GreenBond.
Additionally, TenneT has incorporated into its existing EMTN (Euro Medium Term Note) Programme, arranged by ING Bank N.V., specific Use of Proceeds provisions designed to be aligned with the Green Bond Principles.
Following the launch of the Green Bond issuance programme, TenneT will be meeting with stakeholders and institutional bond investors to present the issuance programme and the associated Framework.
Image: TenneT