Amprion Raises €1B Green Bond To Boost Climate Grid

Amprion GmbH, one of Germany’s leading electricity transmission system operators, has successfully raised €1 billion through a green dual-tranche bond issuance, reinforcing its role as a key enabler of the country’s transition toward climate-neutral electricity. This strategic move not only underlines Amprion’s commitment to sustainability but also showcases the company’s strong market reputation among environmentally conscious investors.

The bond was issued under Amprion’s €9 billion debt issuance programme and witnessed robust demand from the investment community, particularly those focused on sustainable finance. The green bond is divided into two tranches of €500 million each. The first tranche carries a maturity of 4.5 years and offers a coupon of 3.000%, while the second tranche comes with a longer maturity of 11 years and a 3.875% coupon. This structure allows Amprion to diversify its financing portfolio while catering to the varied preferences of institutional investors.

The proceeds from the bond will be channeled exclusively into sustainable infrastructure projects, in accordance with Amprion’s Green Finance Framework. This framework has been developed in alignment with the International Capital Market Association’s (ICMA) Green Bond Principles and has been externally reviewed and verified by leading ESG ratings firm Sustainalytics. This verification lends credibility to the company’s financing strategy and assures investors that the funds will be used transparently and responsibly.

Commenting on the successful issuance, Peter Rüth, Chief Financial Officer of Amprion, said, “The successful access to the capital market is an important prerequisite for financing the energy transition in Germany.” He further added, “The positive response underscores investors’ confidence in our sustainable business model and our growth path.” Rüth’s remarks reflect Amprion’s strategic vision of transforming the power grid into a climate-resilient and future-proof infrastructure network.

This transaction also marks a milestone in expanding Amprion’s investor base, drawing participation from a wider circle of institutions committed to ESG-aligned investments. The strong response from the market is a testament to the growing appeal of green bonds as an asset class, as well as the increasing trust in Amprion’s long-term sustainability goals.

The green bond has received expected ratings of Baa1 from Moody’s and A- from Fitch, aligning with Amprion’s existing investment-grade credit profile (Baa1/negative from Moody’s and BBB+/stable from Fitch). These ratings reflect the financial stability and prudent risk management strategies that Amprion continues to uphold, which is particularly important for investors navigating an increasingly volatile global economic landscape.

The bond issuance comes at a pivotal time for Amprion, as the company prepares to embark on an ambitious €22 billion investment plan over the next five years to accelerate grid expansion and modernisation. This large-scale investment will be crucial for integrating renewable energy sources into the grid and supporting Germany’s ambitious climate targets. With wind and solar energy becoming dominant sources of electricity in the country, upgrading the transmission infrastructure has become essential to ensure reliability, resilience, and efficiency.

Amprion’s green finance strategy plays a critical role in achieving these objectives. By leveraging capital markets and aligning its financing with international sustainability standards, the company is setting a benchmark for responsible corporate finance in the energy sector. Moreover, the issuance demonstrates how large infrastructure players can contribute meaningfully to the global fight against climate change while maintaining financial discipline and fostering investor trust.

The transaction was managed by a consortium of major financial institutions, including Bayerische Landesbank, Commerzbank, DZ BANK AG, ING, Landesbank Hessen-Thüringen, Landesbank Baden-Württemberg, SEB, and UniCredit, acting as joint lead managers. Their involvement further indicates the high degree of confidence the financial sector places in Amprion’s sustainability trajectory and its role in shaping the energy landscape of tomorrow.

In a world increasingly driven by ESG metrics and climate-conscious investing, Amprion’s successful green bond issuance is a significant endorsement of its long-term strategy. It not only empowers the company to move ahead with its climate-aligned infrastructure projects but also sets a powerful precedent for other energy companies navigating the shift toward net-zero emissions.

As Europe intensifies efforts to achieve carbon neutrality by 2050, the importance of reliable, sustainable, and efficient electricity transmission cannot be overstated. Amprion’s leadership in this domain, backed by strong financial instruments like green bonds, positions it as a pivotal player in the continent’s energy transformation journey.