50Hertz parent company issues corporate bond of 500 million euros to finance investments

With a corporate bond of 500 million EUR Eurogrid GmbH secures liquidity for the further expansion of the power grid necessary for the energy transition. The interest rate of the corporate bond is 0.741% for a period of twelve years. The bond will be issued at the Luxembourg Stock Exchange and was placed with investors from over 15 countries with the support of four of the main banks with which the group collaborates, namely BNP Paribas Fortis, Commerzbank, ING and NatWest Markets. The majority of investors is coming from Germany (more than one third), followed by the United Kingdom and France.

Marco Nix, CFO at 50Hertz: 'With this transaction, we have secured further resources with very good conditions, particularly for onshore grid expansion projects, because we are pursuing ambitious investment targets to make the energy transition in Germany a success and ensure that the power demand in our grid area is covered by 100% renewable energy till 2032.' In the coming five years, 50Hertz is planning investments in grid infrastructure of around 4.7 billion EUR. The gathered resources are intended for top energy transition projects such as the SuedOstLink.

The current bond secures the funds needed in 2021. According to Marco Nix, the balanced geographic distribution and the evolution of the order book with an oversubscription of around 3.5 times after the final price setting, reflecting 'the great interest and confidence in Eurogrid and 50Hertz.' This close coverage was supported by the open and regular dialogue with the investors in recent years. Simultaneously this transaction clearly shows the investors' trust in the currently applicable regulatory framework. 'We therefore plead for a cautious further development of the regulation that takes into account the long-term investment needs of the energy transition. This matches the expectations of our investors that they expressed in our shared conversations,' said the 50Hertz CFO.