TenneT, the Dutch-German transmission system operator, is considering venturing into the capital markets to finance its operations in Germany, driven by the rapid expansion of its grid infrastructure both onshore and offshore.
In a statement released by the company, they emphasized the substantial investments required to support the accelerated grid expansion. TenneT recently outlined a 10-year investment plan spanning 2024-2033 for both the Netherlands and Germany, totaling €60 billion, with a significant portion earmarked for debt financing but also necessitating equity.
Regarding the equity component for its German operations, TenneT has explored various avenues, including discussions for a potential full sale to Kreditanstalt fur Wiederaufbau (KfW) on behalf of Berlin. Despite prolonged negotiations spanning over a year, no agreement has been reached thus far.
In collaboration with the Dutch state, its sole shareholder, TenneT is now contemplating alternative structural options. These may involve preparing for potential investment from private entities in TenneT Germany or even considering a public listing to raise equity in the capital markets.
While these deliberations continue, the Dutch state has extended a shareholder loan of €25 billion to TenneT, securing the financing for its planned ventures in the Netherlands and Germany for the years 2024 and 2025.
TenneT also recently made strides in the hybrid market, issuing a dual tranche €1.1 billion green hybrid bond.
Despite the ongoing discussions and explorations, TenneT reassures its commitment to executing its extensive investment agenda in both countries, aiming to bolster much-needed transmission capacity onshore and offshore.
