Press release

Shareholders strengthen Stedin Group’s equity by €200 million

Rotterdam, 25 June 2021 – Stedin Group’s shareholders are to strengthen the grid operator’s equity by €200 million in the form of cumulative preference shares. The shareholders approved the proposed capital contribution of €200 million during the shareholders’ meeting on 25 June. A large majority of the shareholders have subscribed for the preference shares. 

Danny Benima, CFO of Stedin Group: “A strengthening of Stedin’s equity is needed to continue all the investments in the energy transition. The share issue was a success after an intensive process with the shareholders, giving us a huge feeling of support. The shareholders today took a significant step towards a financially healthy future for Stedin Group and so are supporting progress on the energy transition in our region.”

The €200 million preference share issue is classified as equity. The participating shareholders will receive the next few years a fixed dividend of 3% per year on the amount invested. 

Strengthening the financial position
Stedin Group will require capital of €1 billion up to 2030 to properly streamline the energy transition over the next few years. Stedin is exploring several routes to deal with this. It is critically reviewing its own costs and has a €180 million cost saving programme running to 2025. In addition, Stedin and other grid managers are continuing discussions on the financial sustainability of the energy transition with the Ministry of Economic Affairs and Climate Policy, the Ministry of Finance and the Netherlands Authority for Consumers and Markets (ACM). It is also examining the extent to which new shareholders could participate. 

The long-term capital request to shareholders depends on the pace of the energy transition, future regulations and the associated rates. Starting in the autumn, Stedin and its shareholders will discuss a further possible capital contribution for the subsequent period. The details of ACM’s new decision on the method that regional grid operators will use to set their rates will then have been finalised.

Arjan van Gils, alderman responsible for finance in the municipality of Rotterdam and chairman of the Shareholders' Committee: “Every municipality is busy with the energy transition. It demands considerable investment in the networks, which need to be expanded and strengthened more quickly. This step means that Stedin will be able to tackle the acceleration that is required.”

Investing in the energy transition
Stedin’s investment in the energy network is required to meet climate targets and bring about the ambitions in the Regional Energy Strategies. It will also create local employment and regional economic growth. Total investment by Stedin in the energy transition is forecast to be at least €7 billion by 2030.