TenneT Netherlands has priced a €1.5 billion five-year green bond to support its long-term electricity grid investment programme. The bond carries a 3.625% coupon, is backed by an irrevocable and unconditional institutional guarantee from the Dutch State and attracted orders exceeding €3.8 billion. The transaction was priced at a 18.9-basis-point spread over the reference Dutch State Loan and marks the tightest spread achieved by a Dutch agency issuer in 2026.
Key Overview
- TenneT Netherlands priced a €1.5 billion five-year green bond.
- The bond carries a 3.625% coupon.
- Orders exceeded €3.8 billion.
- The bond is guaranteed by the Dutch State.
- It is expected to receive Aaa/AAA ratings from Moody’s and Standard & Poor’s.
- The transaction was priced at a 18.9 bps spread over the reference Dutch State Loan.
- TenneT Netherlands has issued €6 billion of Green Bonds under the Dutch State guarantee in 2026.
TenneT Prices €1.5 Billion Green Bond
TenneT Netherlands has priced a €1.5 billion five-year green bond under its funding structure supported by an irrevocable and unconditional institutional guarantee from the Dutch State.
The bond carries a 3.625% coupon and is expected to receive Aaa/AAA credit ratings from Moody’s and Standard & Poor’s. It will be listed on Euronext Amsterdam.
The transaction closes TenneT Netherlands’ 2026 funding programme and adds another source of capital for the company’s long-term electricity grid investment plans.
Investor Demand Exceeds €3.8 Billion
The bond attracted strong interest from international investors.
Order books exceeded €3.8 billion, more than twice the size of the €1.5 billion transaction.
The demand came from a broad and diversified international investor base, reflecting continued interest in TenneT Netherlands’ debt.
The strong order book allowed the company to complete the transaction while maintaining a relatively tight spread over Dutch government debt.
Tightest Dutch Agency Spread of 2026
The bond was priced at an equivalent spread of 18.9 basis points over the reference Dutch State Loan and 3 basis points over the mid-swaps curve.
According to the sources, this represents the tightest spread achieved by a Dutch agency issuer in 2026.
The transaction also strengthens TenneT Netherlands’ benchmark curve in the five-year segment.
Dutch State Guarantee Supports the Bond
The green bond is being issued under TenneT Netherlands’ Euro Medium Term Note programme.
The Dutch State’s guarantee is irrevocable and unconditional and covers TenneT Netherlands’ payment obligations related to the issuance and future debt financing.
The guarantee enables TenneT Netherlands to issue senior debt expected to carry Aaa/AAA credit ratings.
This structure is supporting TenneT’s access to institutional funding as it continues its long-term grid investment programme.
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Green Bond Supports Electricity Network Investment
The financing is part of TenneT Netherlands’ broader green financing programme.
The proceeds are intended to support investment in electricity network infrastructure, including eligible green investments under TenneT Netherlands’ Green Financing Framework.
The framework covers categories including Electricity Network, Connection Services and Interconnectors. These investments are linked to the EU environmental objective of climate change mitigation.
This places the bond directly within TenneT’s wider effort to finance electricity infrastructure needed for the energy transition.
€6 Billion of Green Bonds Issued in 2026
The latest transaction takes TenneT Netherlands’ green bond issuance for 2026 to €6 billion under the Dutch State guarantee.
The amount is in line with the company’s issuance guidance for the year.
The latest five-year bond therefore represents the final transaction in TenneT Netherlands’ 2026 funding programme.
Confidence in Long-Term Investment Programme
Gerard Kits, Head of Treasury and Insurance at TenneT Netherlands, said the company was pleased to conclude its 2026 funding programme with the transaction.
He said strong investor demand throughout the year demonstrated confidence in our credit quality and the company’s long-term investment programme.
The latest issuance also follows TenneT Netherlands’ establishment as a recognised issuer in the European SSA market following the introduction of the Dutch State guarantee.
Outlook
TenneT Netherlands’ €1.5 billion green bond provides another source of funding for the company’s long-term electricity grid investment programme.
With orders exceeding €3.8 billion, the transaction attracted more than twice the amount of capital sought. Its 3.625% coupon and 18.9-basis-point spread also demonstrate the pricing achieved in the current market.
The issuance brings TenneT Netherlands’ 2026 green bond issuance to €6 billion and closes its funding programme for the year.
FAQs
1. How much did TenneT raise?
TenneT Netherlands raised €1.5 billion through a five-year green bond.
2. What is the bond’s coupon?
The bond carries a 3.625% coupon.
3. How strong was investor demand?
Orders exceeded €3.8 billion, more than twice the €1.5 billion transaction size.
4. What will the green bond finance?
The proceeds will support eligible green investments linked to electricity networks, connection services and interconnectors.
Sources: Dealroom | reNEWS | Ocean Energy Resources
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