By Laura Contemori – ROME (Econostream) – German grid operator TenneT Germany on Tuesday priced €2.6 billion of dual-tranche green hybrid bonds in its inaugural European Green Bond (EuGB) hybrid transaction.

The €1.2 billion tranche, maturing on December 3, 2056, carries a 4.250% fixed coupon until its first reset date on December 3, 2031, and was reoffered at a price of 99.442 for a yield of 4.375%, equivalent to an initial credit spread of 128.9bp.

The €1.4 billion tranche, maturing on March 3, 2057, carries a 4.750% fixed coupon until its first reset date on March 3, 2035, and was reoffered at a price of 99.685 for a yield of 4.800%, equivalent to an initial credit spread of 161.2bp.

The tranches have non-call periods of 5.25 years and 8.5 years, respectively, TenneT Germany said.

The peak order book reached around 5.4 times the €2.6 billion issuance volume, the company said.

The green hybrid bonds were issued in accordance with the EU Green Bond Regulation and the ICMA Green Bond Principles 2025 and are expected to be listed on the regulated market of the Luxembourg Stock Exchange, with display on the Luxembourg Green Exchange.

Deutsche Bank and ING acted as joint hybrid structurers, while ING served as sole sustainability structurer. Crédit Agricole CIB, Deutsche Bank, ING, Mizuho, Morgan Stanley and Santander acted as joint active bookrunners.