Eurogrid GmbH, the parent company of 50Hertz Transmission GmbH, entered into a contract with twelve banks for a redeemable loan of one billion euros with a term of ten years as part of ‘green’ syndicated financing supported by KfW. The loan will finance two offshore grid connections in the North and Baltic Seas.
The projects financed with the loan are the two 2 GW grid connections Ostwind 4, the first direct current grid connection in the innovative 525 kV standard off the island of Rügen in the Baltic Sea, and LanWin 3, the first offshore grid connection to be built by 50Hertz in the North Sea off the coast of Schleswig-Holstein.
Following the successful syndication of a first KfW-supported green loan in April 2023, this is the second financing project in which Eurogrid is participating in a KfW programme as part of the climate protection for Corporates. The company was again supported by IKB Deutsche Industriebank as an arranger. Eurogrid has thus secured a significant amount early in the year to finance this year’s investments.
Marco Nix, 50Hertz Chief Financial and Investment Officer (CFO): ‘The relatively new 525kV offshore DC standard is a demanding challenge for 50Hertz, both technically and economically. The loan agreement concluded under the umbrella of the KfW programme is another important building block in our financing strategy, which is based on green financing elements, a broad investor base and a balanced mix of various financing instruments. Loans from equity investors and a strong internal financing force provide the necessary support.’
Source: 50Hertz
