TenneT GmbH & Co. KG TenneT Germany successfully prices inaugural EuGB €2.6 billion dual-tranche hybrid bond

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TenneT Germany successfully prices inaugural EuGB €2.6 billion dual-tranche hybrid bond

• Total issuance volume of €2.6 billion across two hybrid tranches with non-call periods of 5.25 years and 8.5 years, respectively
• Peak order book ~5.4 times oversubscribed
• Green hybrid bonds issued in accordance with EU Green Bond Regulation and ICMA Green Bond Principles (2025)

TenneT Germany today successfully priced its inaugural EuGB hybrid bond transaction, further diversifying its funding base and strengthening its capital structure to support the company’s substantial investment programme.

The €2.6 billion dual-tranche issuance comprises €1.2 billion with a coupon of 4.25% p.a. and a non-call period of 5.25 years and €1.4 billion with a coupon of 4.75% p.a. and a non-call period of 8.5 years. The transaction attracted exceptionally strong investor demand, with the peak order book reaching approximately 5.4 times oversubscription. The offering represents the largest corporate hybrid issuance by a DACH-based utility and the largest corporate EuGB hybrid transaction to date.

“Hybrid capital is a core strategic element of our financing approach. By preserving our equity buffer and strengthening our capital structure, this transaction provides additional flexibility to finance our ambitious investment programme. The strong investor demand confirms the market’s confidence in TenneT Germany’s long-term strategy and role in enabling the energy system of the future,” said Dr Markus Binder, CFO of TenneT Germany.

The green hybrid bonds are issued under TenneT Germany’s €35 billion Debt Issuance Programme and are expected to be listed on the regulated market of the Luxembourg Stock Exchange with expected display on the Luxembourg Green Exchange (LGX). They comply with the EU Green Bond Regulation, TenneT Germany’s European Green Bond Factsheet, the ICMA Green Bond Principles (2025) and TenneT Germany’s Green Finance Framework.

The Joint Active Bookrunners were Crédit Agricole, Deutsche Bank, ING, Mizuho, Morgan Stanley and Santander. Deutsche Bank and ING acted as Joint Hybrid Structurers. ING took over the role as the Sole Sustainability Structurer.

Press Contact
Maria-Elena Richter
+49 151 217 84235
maria-elena.richter@tennet.eu

About TenneT Germany
TenneT Germany is the largest transmission system operator in Germany. The company operates critical infrastructure that secures access to a reliable, sustainable and affordable electricity supply. TenneT Germany is one of the largest investors in electricity grids on land and at sea in Germany. Located at the Northwest European energy crossroads, TenneT Germany connects: North and South. Offshore and Onshore. Germany and Europe. With its more than 5,000 employees, the company builds, maintains and operates Germany’s largest transmission grid with a length over 14,700 km connecting more than a third of the European Union’s total offshore wind capacity. The connection of the North Sea as one of the world’s largest renewable energy sources plays a central role in this. The company’s growth is driven by a rapidly evolving electricity demand that requires a flexible and growing grid architecture.
Lighting the way ahead together

 

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