Sustainability Milestone: Eurogrid’s Green Bonds Support 50Hertz’s Renewable Energy Goals

Sustainability Milestone: Eurogrid’s Green Bonds Support 50Hertz’s Renewable Energy Goals

(IN BRIEF) Eurogrid, the parent company of 50Hertz, a transmission system operator, has secured 1.5 billion euros through its third and fourth Green Bond issuances. These funds will support grid expansion projects on land and at sea to enhance the integration of renewable electricity. The bonds, with varying terms and pricing, will be issued by core banks in Luxembourg. Marco Nix, CFO at 50Hertz, noted the confidence of financial markets in their sustainability-focused strategy. The projects align with EU climate goals and 50Hertz’s plan to achieve 100% renewable energy consumption by 2032. The Green Bond adheres to ICMA principles.

(PRESS RELEASE) BERLIN, 23-Jan-2024 — /EuropaWire/ — Transmission system operator 50Hertz, announces that its parent company, Eurogrid, has successfully secured 1.5 billion euros through its third and fourth Green Bond issuances, marking a historic milestone in the company’s financial history. These funds will be instrumental in advancing critical grid expansion efforts necessary for the ongoing energy transition. The bonds will support carefully selected projects both on land and at sea, aimed at enhancing the integration and transportation of increased volumes of renewable electricity.

The corporate bonds comprise two tranches, with a volume of 700 million euros (with a five-year term and pricing at 3.598 percent) and 800 million euros (with a ten-year term and pricing at 3.915 percent). These bonds will be issued on the regulated market in Luxembourg by a consortium of Eurogrid’s core banks, including Banco Santander, Mizuho Bank, Rabobank, and UniCredit Bank.

Marco Nix, CFO at 50Hertz, expressed confidence in the financial markets’ support for the sustainability-focused corporate strategy of 50Hertz and its main shareholder, the Elia Group. Nix said “The confidence of the financial markets in the sustainability-oriented corporate strategy of 50Hertz and the Elia Group as the main shareholder of Eurogrid remains high. These green bonds will allow us to finance a significant proportion of our investment volume this year.”

The projects financed through these Green Bonds align with the EU’s climate change mitigation action plan and contribute to 50Hertz’s corporate strategy, aiming to achieve “100% by 2032.” This strategy encompasses the goal of covering 100% of electricity consumption within the grid area with renewable energy sources throughout the year. Importantly, the Green Bond adheres to the principles set forth by the International Capital Markets Association (ICMA).

Media contact:

Volker Gustedt
Pressesprecher/Press Officer
Phone:
+49 (0) 30 51 50 2878
Mail:
volker.gustedt@50hertz.com

SOURCE: 50Hertz