A group of investors, including the sovereign wealth funds of Norway and Singapore, and Dutch pensions asset manager APG, are investing €9.5bn to acquire a 46% stake in the German subsidiary of Dutch electricity company Tennet Holding.
Norges Bank Investment Management (NBIM) said it has agreed to invest €4.5bn in TenneT Germany and will become a 21.8% shareholder in the German electricity transmission system operator.
Together, NBIM, Singapore’s GIC and APG, which is investing on behalf of Dutch pension fund ABP, will hold the combined 46% stake in TenneT Germany. The parent company, Dutch state-owned TenneT Holding, will remain a large shareholder in the company, which has a €40bn enterprise value.
Harald von Heyden, global head of energy and infrastructure, NBIM, said: ”This investment demonstrates our commitment to finance 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.”
Ronald Wuijster, CEO of APG Asset Management, said: “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.“
Boon Chin Hau, CIO for infrastructure at GIC, said: “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 decarbonisation.”
Manon van Beek, CEO of TenneT Holding, said: “With this financing solution, TenneT remains Europe’s leading cross border transmission system operator, a key player in system integration, offshore wind connections and market innovation.
“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.”
TenneT Holding also said the German state has expressed interest in a potential investment in TenneT Germany. The firm intends to begin discussions with the state-owned development bank Kreditanstalt für Wiederaufbau about a potential joint investment.
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