Credit Quality
TenneT Netherlands has successfully priced a EUR 1.5 billion 5-year Green Bond issuance under its funding structure supported by an irrevocable and unconditional institutional guarantee from the Dutch State.
The bond carries a coupon of 3.625% and is expected to be rated Aaa/AAA by Moody’s and Standard & Poor’s. The bond will be listed on Euronext Amsterdam.
With order books exceeding EUR 3.8 billion, the bond attracted strong demand from a broad, diversified international investor base.
The transaction reflects the high credit quality of TenneT Netherlands’ Dutch State-guaranteed funding structure and continued investor confidence in the company’s long-term investment programme.
Pricing at an equivalent spread of 18.9 bps over the reference Dutch State Loan and 3 bps over the mid-swaps curve marks the tightest spread achieved by a Dutch Agency issuer in 2026. Further, it strengthens TenneT Netherlands’ liquid benchmark curve in the 5-year segment.
In 2026, TenneT Netherlands issued EUR 6 billion of Green Bonds under the Dutch State guarantee, in line with the issuance guidance for 2026.
Gerard Kits, Head of Treasury and Insurance at TenneT Netherlands, said: “We are very pleased to conclude our 2026 funding programme with such a successful transaction. Since receiving the Dutch State guarantee, we have established TenneT Netherlands as a recognised issuer in the European SSA market. The strong investor demand throughout the year, culminating in this final transaction, demonstrates confidence in our credit quality and our long-term investment programme.”
The new 5-year Green Bond will be issued under TenneT Netherlands’ Euro Medium Term Note (EMTN) Programme. The irrevocable and unconditional institutional guarantee by the Dutch State under the State Guarantee Agreement enables TenneT Netherlands to issue Aaa/AAA senior debt financing and will cover TenneT Netherlands’ payment obligations in respect of, among others, these issuances and future debt financing.
