Stedin Group taps the capital market with its 4th 500 million euro green bond issuance

Stedin Group successfully issued a new €500 million green bond. The net proceeds will be invested in expanding and reinforcing the electricity grid to make the energy transition possible. The grid operator has been issuing green bonds since 2019 and Stedin Group has now issued €2 billion of green bonds in total. 

The 7-year €500 million green bond has been issued at a price of 99.563% and a of coupon 3.625% (effective yield of 3.697%). Stedin Group has been able to attract existing but also new ESG investors into this green bond. The issue has almost been 3 times oversubscribed which contributed in getting this financing done at very attractive terms. The bond is listed on the Euronext Amsterdam.

Investment of €8 billion 

Stedin will be investing €8 billion over the next ten years to make the energy grid future-proof. This is a condition for the success of the energy transition but also for facilitating the growing economy and residential development. At the same time, maintenance will be carried out to keep the grids reliable and safe. 

CFO Danny Benima: “The investments related to the energy transition will be financed partly out of our operating income and new debt issuances, like this green bond. In 2023 and 2024, 22 new shareholders – including the Dutch government – strengthened Stedin's balance sheet with additional equity. This support was important in the dialogue with investors and contributed to a successful issue with attractive interest compensation”.

Green Bond 

The proceeds from the issue will be used to invest in a wide range of sustainable projects such as connecting new wind turbines, solar farms to the electricity grid and the sustainability of companies and public homes. This enables our customers to reduce their own CO2 emissions, an important pillar in Stedin's sustainability strategy (ESG). The issuance of this green bond is based on the Green Finance Framework (pdf).