Hengeler Mueller advises TenneT Holding B.V. on citizen bond („Bürgeranleihe Westküstenleitung“)

10. July 2013

Hengeler Mueller advises TenneT Holding B.V. on the joint financing of the West Coast line with the citizens of Dithmarschen and Nordfriesland. For this purpose, TenneT has issued the “Bürgeranleihe-Westküstenleitung” in the form of a hybrid bond with no specified maturity date. The wording of the terms and conditions for the bonds were adjusted according to the needs of private investors in an innovative way. The volume of the bond issue will be a maximum of 15% of the overall investment volume for the line. The bond is a pilot project for the financial participation of citizens in the extension of the electricity transmission grid. At the beginning of July 2013, the framework of such citizens’ investment into grid infrastructure has been outlined in a white paper jointly published by the four German transmission system operators together with the Federal Ministry for Economic Affairs and the Federal Ministry for Environment.

TenneT is the first cross-border transmission system operator for electricity in Europe and belongs to the leading grid operators in Europe with approximately 20,000 kilometres of (extra) high-voltage lines and 36 million end users in the Netherlands and Germany. With planned investments at a volume of more than EUR 7 bn the company listed in Hamburg and Luxemburg is the largest investor in the turnaround of energy policy.

Hengeler Mueller advises TenneT Holding B.V. on the project “Bürgeranleihe Westküstenleitung” The Hengeler Mueller team is led by partner Hendrik Haag (Capital Markets, Frankfurt) and includes partner Dirk Uwer as well as senior associate Jörg Meinzenbach (both Energy Law, Düsseldorf) and Raik Petermann (documentation assistant). The advice on Dutch law is provided by our Dutch Best Friend De Brauw Blackstone Westbroek N.V.