Eurogrid, the parent company of transmission system operator 50Hertz, secured funds totaling 1,5 billion euros with its third and fourth Green Bond to continue the necessary grid expansion for the energy transition. It is the highest bond amount in the history of the company. Selected projects on land and at sea that can increase the integration and transportation of additional amounts of renewable electricity will be financed using the bonds.
The corporate bonds have a volume of 700 million Euro (term five years; pricing 3,598 percent) and 800 million euro (term ten years; pricing 3,915 percent). Banco Santander, Mizuho Bank, Rabobank and UniCredit Bank from the group of Eurogrid core banks on the regulated market in Luxembourg will issue the bonds.
Marco Nix, CFO at 50Hertz, commented: “The confidence of the financial markets in the sustainability-oriented corporate strategy of 50Hertz and the Elia Group as the main shareholder of Eurogrid remains high. These green bonds will allow us to finance a significant proportion of our investment volume this year.”
The projects financed through this Green Bond are in line with the EU action plan to mitigate climate change and contribute to the 50Hertz corporate strategy “100% by 2032”. It includes the target that electricity consumption in the grid area in 2032 can be covered to 100% by renewable energies over the course of the year. The Green Bond complies with the principles of the International Capital Markets Association (ICMA).