Image courtesy TenneT
TenneT Holding has reached an agreement with three large institutional investors in Europe for €9.5 billion ($11.1 billion) in TenneT Germany, which has been seeking a financial solution for its grid expansion plans.
The investors include APG, investing on behalf of Dutch pension fund ABP, Singapore sovereign wealth fund GIC and Norges Bank Investment Management (NBIM).
TenneT has a €200 billion ($234.4 billion) investment plan for grid expansion across their operations in the Netherlands and Germany until 2034. With the transaction, TenneT and the Dutch state, its sole shareholder, secure the equity required for Germany.
Commenting in a release was Manon van Beek, CEO of TenneT Holding: “We are truly pleased to have achieved a structural solution for TenneT Germany’s equity need and I eagerly look forward to partnering with these highly reputable investors.
“This announcement marks the end of an intense period during which we have separated our Dutch and German operations within the group, implemented a new funding structure for TenneT Netherlands and secured equity funding for TenneT Germany.
“I am proud of all my colleagues and our close collaboration with the Dutch Ministry of Finance throughout the process. We will continue our full focus on securing access to reliable, sustainable and affordable electricity supply.”
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The transaction follows a thorough assessment of TenneT and the Dutch state as its sole shareholder, following the split of TenneT’s German and Dutch operations.
According to TenneT, the company, alongside the Ministry of Finance, jointly concluded that a private placement of shares is the best solution, rather than a sale of their German operations.
Said Ronald Wuijster, CEO of APG Asset Management: “This investment serves multiple strategic goals.
“By acquiring a stake in TenneT Germany—a stable, regulated infrastructure asset in an AAA-rated country—we secure a relatively low-risk investment with stable long-term cashflows for our client ABP and our partners. Additionally, it is an impact investment which supports Sustainable Development Goal 7 (Affordable and Clean Energy) and strengthens Europe’s infrastructure autonomy. This shows our expertise in large-scale infrastructure deals and our commitment towards helping our clients and partners reach their goals.”
Boon Chin Hau, chief investment officer, infrastructure at GIC, said: “GIC is excited to be a part of the next phase of TenneT Germany’s growth.
“As a long-term investor, GIC is confident that with Germany’s collaborative and transparent approach to regulation, TenneT Germany will continue to play an important role in Europe’s continued, strong push towards decarbonization.”
Harald von Heyden, global head of energy & infrastructure at NBIM: “This investment demonstrates our commitment to financing the energy transition. We are excited to partner with TenneT Holding, APG and GIC to support the growth of TenneT Germany. TenneT Germany’s transmission grid is essential for delivering renewable energy where it’s needed in Europe’s largest economy.”
According to TenneT, the German state also expressed interest in a potential investment in TenneT Germany, and both TenneT and the Dutch state have indicated they are open to this. TenneT intends to engage in discussions in the coming period with Kreditanstalt für Wiederaufbau (KfW) in this regard.
Completion of the transaction is subject to customary conditions including regulatory clearances and is expected to take place in the first half of 2026.
TenneT Netherlands and TenneT Germany will continue to cooperate on strategic areas, such as the 2GW programme, designed to roll-out the offshore grid.
