Eurogrid Secures One Billion Euros for Offshore Grid Projects with KfW-Backed Green Financing

Eurogrid Secures One Billion Euros for Offshore Grid Projects with KfW-Backed Green Financing

(IN BRIEF) Eurogrid GmbH, the parent company of 50Hertz, has secured a one billion euro, ten-year loan agreement with twelve banks as part of a KfW-backed green syndicated financing deal. The loan will fund two offshore grid projects, Ostwind 4 and LanWin 3, located in the North and Baltic Seas. The Ostwind 4 project will be the first to use the 525 kV direct current standard, while LanWin 3 is 50Hertz’s first North Sea offshore grid connection. This is the second green loan for Eurogrid, continuing their financing strategy focused on green investments and a diverse mix of funding sources.

(PRESS RELEASE) BERLIN, 13-Feb-2025 — /EuropaWire/ — Eurogrid GmbH, the parent company of 50Hertz Transmission GmbH, has secured a significant financing agreement with twelve banks, raising one billion euros through a redeemable loan for a term of ten years. This loan, part of a green syndicated financing initiative backed by KfW, will fund two important offshore grid projects in the North and Baltic Seas.

The projects financed include the Ostwind 4 and LanWin 3 offshore grid connections. Ostwind 4 is a 2 GW direct current grid connection located off the island of Rügen in the Baltic Sea, and it will be the first to use the cutting-edge 525 kV standard. LanWin 3, also a 2 GW offshore connection, will be the first project of its kind to be built by 50Hertz in the North Sea off the coast of Schleswig-Holstein.

This deal marks the second KfW-supported green loan secured by Eurogrid, following a successful syndication in April 2023. Once again, IKB Deutsche Industriebank acted as the arranger for this loan, reinforcing Eurogrid’s strong financial positioning. The company is well on its way to meeting this year’s investment goals with a substantial amount of funding already secured.

Marco Nix, Chief Financial and Investment Officer (CFO) of 50Hertz, commented, “The 525 kV offshore DC standard is a technically and economically challenging project for 50Hertz. The loan agreement, made under the KfW programme, is a crucial part of our overall financing strategy, which emphasizes green finance elements, a diverse investor base, and a balanced approach with various financing instruments. Support from equity investors and internal financing structures provide the necessary foundation for these ambitious projects.”