TenneT Tapping Green Bonds to Finance $24 Billion Grid Upgradeby
TenneT Holding BV, the Dutch company helping build Germany’s new clean-power grid, may tap green bonds to finance the 22 billion euro ($24.2 billion) project.
Green bonds, securities issued to finance climate-friendly projects, would be a “suitable instrument to finance a multibillion program of investments,” read a statement by the Arnhem-based company that didn’t provide the timing or potential value for a deal. TenneT issued 1 billion euros of green bonds last year.
TenneT and three other grid owners are building a high-voltage network to take wind and solar power from coastal regions to Germany’s industrial centers in Bavaria and Baden-Wuerttemberg. An additional 10 billion euros may be required to link offshore wind parks to mainland grids. The work is due for completion by 2025.
TenneT already said in May that additional green bonds could be used to finance project work. Global green bond issuance this year is expected to grow 4 percent to about $50 billion, according to Bloomberg New Energy Finance.