FRANKFURT, May 28 (Reuters) - Dutch state-owned grid firm TenneT IPO-TTH.AS said on Thursday it had issued 1 billion euros ($1 billion) worth of “green” bonds for investments in transmission cables for German offshore wind farms.
The market showed keen interest as the dual-tranche bond was two times oversubscribed, it said in a statement. Green bonds are a fixed-income security designed to raise capital for low-carbon or clean energy investments.
“I expect that this will be the first of a series of green bond issues for TenneT,” said Otto Jager, TenneT’s chief financial officer.
TenneT said earlier this month the programme could evolve into a multi-billion euro opportunity to finance Dutch and German offshore wind projects, part of a trend of the European energy sector transitioning away from fossil-fuel reliance towards renewables.
TenneT’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total between 7 and 9 billion euros, of which 5 to 6 billion will be in Germany, over the next 10 years. ($1 = 0.9169 euros) (Reporting by Vera Eckert; Editing by David Holmes)