Germany, Bayreuth: TenneT Germany has priced a $3 B (€2.6 B) green hybrid bond across two tranches, strengthening its financing base as investment in the German transmission network accelerates.
Investor demand was strong, with peak orders reaching around 5.4 times the issue size. The transaction consists of a $1.4 B (€1.2 B) tranche carrying a 4.25 % annual coupon and a 5.25-year non-call period, alongside a $1.6 B (€1.4 B) tranche with a 4.75 % coupon and an 8.5-year non-call period.
The securities are being issued under TenneT Germany’s $40 B (€35 B) debt issuance programme and are expected to be listed on the Luxembourg Stock Exchange. Structured as hybrid capital, they provide an additional source of funding alongside senior debt and equity.
TenneT Germany expects to invest around $78 B (€67 B) between 2026 and 2030 in transmission expansion and reinforcement. During the first half of 2026 alone, the company invested $4.7 B (€4.1 B), 14 % more than in the same period last year, and completed 188 km of new grid.
The new financing follows a $4 B (€3.5 B) senior European Green Bond transaction in July and the establishment of a $7 B (€6 B) commercial paper programme earlier in 2026.
TenneT Germany’s investment programme includes new transmission lines, offshore connections, substations, converter infrastructure and reinforcement of the existing network. The latest bonds comply with the EU Green Bond Regulation and the ICMA Green Bond Principles.
Source: Electricalnews.co.uk
