TenneT Germany has raised EUR 3.5 bn with its first green bond issue, the largest ever for a corporate in Europe with a green bond aligned with the European Union's Green Bond Framework. The historic amount of fund-raising is an expression of the growing appetite of investors for sustainable finance, and it demonstrates the growing importance of green bonds, renewable energy, EU Taxonomy, sustainable finance and energy transition in the fight against decarbonization in Europe.

The issue received incredible investor interest: there was a demand for the bonds in excess of six times the number available for issue. The funds raised will go towards TenneT Germany's large-scale investment programme for the expansion and modernization of electricity transmission infrastructure. The deal also underscores the role of green bonds, renewable energy, EU Taxonomy, sustainable finance and energy transition as key areas that will support Europe's climate goals and energy transition.

Record-Breaking Green Bond infuses Investor Confidence.

The bond offering consisted of four bond tranches with maturities of 4, 8, 12 and 20 years, offering the company a broad spread of maturities and good access to a wide variety of institutional investors.

The strong investor response confirms the market's demand for good quality ESG-compliant sustainable investments in line with the EU's Continuous Improvement Regulation (CIR) on environmental finance. With the issuance TenneT Germany has joined the top issuers that advance the transition towards a low-carbon economy with clear and credible financing solutions in line with the European Green Bond (EuGB) Standard.

The positive debut also marks the first time in which TenneT Germany has made its mark in international debt capital markets and laid a sound financial basis for future fundraising efforts.

Expansion of the electricity grid in Germany

The bond proceeds will be utilized in accordance with the company's Green Finance Framework, which has been rolled out at the end of 2025. The framework classifies investments in electricity transmission infrastructure and related equipment as green projects which have a direct impact on the climate goals.

TenneT Germany has revealed it will invest some €67 billion from 2026 to 2030 to greatly extend and modernise its electricity grid. The investments are to enhance the transmission system in Germany, empower integration of renewable energy sources, and increase the resilience and efficiency of the country's electricity network.

With the continuous development of offshore wind generation, solar parks and other clean energy power generation, the capacity of the transmission line has become more and more important, which has been used to deliver offshore wind energy and other clean energy sources efficiently over long distances and to ensure the stability of the power grid.

The planned investments will contribute significantly to Germany's national climate goals and the overall European energy transition.

The EU Green Bond Standard is a new sustainability benchmark that sets high standards for sustainability.

The issuance is in line with European Union's European Green Bond (EuGB) Regulation that sets clear requirements for green debt instruments in the EU.

According to the regulation, the proceeds from the EuGB-labelled bonds must be allocated only to economic activities that align with the EU Taxonomy, which classifies eco-friendly activities.

There are also very high transparency and reporting standards to be met by issuers. These involve transparency of the use of the funds, giving detailed information on the types of investment, a credible green transition plan and regular reporting on the contribution of the financed projects to environmental goals.

The regulation was approved by the European Union in November 2023 and will enter into force in December 2024. It was launched by the European Commission to create a “gold standard” for green bonds to minimize greenwashing, and to increase trust in the sustainable finance market.

Encouraging the transition of Europe's energy sector.Facilitating the energy transition of Europe.

TenneT Germany's financing approach is in line with the growing significance of transmission infrastructure in the transition to cleaner energy systems in Europe. Although the generation of renewable energy is growing at a fast pace, considerable investments must be made in electricity grids if the energy produced from renewable sources can be efficiently supplied to the consumer.

Modern transmission solutions are also anticipated to contribute to energy security, help meet increasing electricity demand due to electrification and aid decarbonisation across various sectors of the economy in the future.

With a EuGB-compliant issuance, TenneT Germany has enhanced its capacity to deliver on one of Europe's largest programmes for electricity infrastructure investment and is making a contribution to Europe's climate and sustainability agenda.

The Company's long-term capital market strategy is highlighted.

Dr. Markus Binder, TenneT Germany's Chief Financial Officer, stated that the transaction is an important milestone for TenneT.

The first green bond issue marks the beginning of TenneT Germany having access to debt capital markets on its own, and investors' trust in the company's business model and in the central place it is taking up in the future energy system. The deal is the first step in the company's long-term involvement in the debt capital markets and will enable it to finance its far-reaching investment programme sustainably and in a scalable way, he added.

This record-breaking offering not only provided a significant milestone for TenneT Germany, but also showcased the potential for large-scale green financing to drive investment in a cleaner, more resilient and low carbon energy future for Europe.