In a major win for sustainable finance, Amprion, a leading transmission system operator active in Germany and Europe, has successfully placed a green dual-tranche bond with a total nominal volume of €1.2 billion. The bond was issued as part of the company’s comprehensive €9 billion debt issuance program.
Faced with a competitive market, Amprion managed to attract substantial interest, with the order book swelling to €2.8 billion. The company intends to be a "frequent issuer" on the bond market to support grid expansions necessary for achieving climate neutrality.
The green bond was issued in two tranches and has been listed on the Euro MTF of the Luxembourg Stock Exchange. The first tranche, with a volume of €500 million, has a maturity of five years and an interest coupon of 3.875% per annum. The second tranche, valued at €700 million, has a maturity of 11 years with an interest coupon of 4.125% per annum.
According to Peter Rüth, CFO of Amprion, the successful bond placement underscores the capital market's confidence in the company. "We have once again successfully placed a dual-tranche green bond. This reflects the capital market's confidence in Amprion and our sustainable business model. The issuance of sustainable financial instruments and successful access to the capital market are important requirements also for future significant investments to implement the energy transition in Germany,” said Rüth.
The proceeds from the bond will be used exclusively for sustainable projects meeting the criteria of Amprion’s Green Finance Framework. This framework was developed in line with the international Green Bond Principles and has been validated by a second-party opinion from Sustainalytics, a reputable ESG rating agency.
In terms of ratings, Amprion has earned corporate ratings of Baa1 and BBB+ from Moody's and Fitch, respectively, each with a stable outlook. Moreover, Moody’s has assigned a Baa1 rating to the newly issued dual-tranche green bond.
The transaction received support from Commerzbank, ING, SEB, and UniCredit as joint global coordinators and joint lead managers. Additional support came from Bayerische Landesbank (BayernLB), DZ BANK AG, Landesbank Hessen-Thüringen (Helaba), and Landesbank Baden-Württemberg (LBBW) as additional joint lead managers.
With this successful bond placement, Amprion continues to establish itself as a serious player in the green finance sector, contributing significantly to the global move towards sustainability and climate neutrality.
Source: Amprion