European investors support ENEXIS GROEP’s energy transition agenda

26 April 2021

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Securing the future of sustainable energy supply

ENEXIS GROEP Holding N.V. is the leading Distribution System Operator (DSO) in the Netherlands, owning and managing the gas and electricity distribution networks in several Dutch regions, covering 31% of the country.

ENEXIS’s over 4,767 employees focus on delivering the energy system of the future by installing ‘smart grids’ to prepare for an increase in (decentralised) renewable generation, energy storage, diversification of heat sources and electric transport.

The number of connections for solar panels, solar fields and wind turbines that ENEXIS is managing has increased nearly threefold in the past five years. While there was sufficient capacity in 2020 for the company to provide a transmission indication in 95% of cases, the capacity of their grids is becoming increasingly scarce due to the exponentially rising demand from customers wanting to feed energy into the grids. Therefore, ENEXIS is working hard to extend and modify its smart grids as well as make them more efficient to ensure not only reliable, but also affordable, energy supply.

Second Green Bond raises funds for energy transition to achieve Dutch Climate Agreement goals

After its green debt debut in June last year, ENEXIS GROEP nominated NatWest as Active Bookrunner for its second green bond, a €500million 12-year note.

To take advantage of relatively little competing supply, the company launched its follow-up green debt issuance at the beginning of April, opting for a 12-year tenor to benefit from low credit spreads and the current low yield environment.

On the back of its strong sustainability credentials – high ESG ratings from rating agencies ISS and Sustainalytics and a Green Finance Framework that is aligned with the EU Taxonomy – European investors showed considerable appetite. Over 50% of the allocation went to investors in Germany, Austria and France, with asset managers taking 76% of the overall order book.

The proceeds will be allocated to eligible green projects as set out in ENEXIS’s Green Finance Framework, which include International Capital Market Association (ICMA) categories ‘Renewable Energy’, ‘Energy Efficiency’, ‘Clean Transportation’ and ‘Green Buildings’.

Green debt dominates Dutch utility market

Michiel de Bruijn, Senior Corporate Coverage Director, NatWest, said: “We’re very pleased with the investor demand for ENEXIS GROEP’s second green bond highlighting the strong sustainability credentials of our customer. Climate is of paramount importance to our business, our customers and the economies we operate in, and we continue to support companies preparing their own transition to sustainable operations and those, such as ENEXIS, helping others to become more sustainable.”

Dr Arthur Krebbers, Head of Sustainable Finance Corporates, NatWest, commented: “We’re delighted to have supported ENEXIS GROEP with the issuance of their second green bond. This successful transaction is another example for the growing dominance of green debt in the Dutch utility market; approximately 82% of Dutch utility debt issued since 2019 has been in green format. Grid operators, like ENEXIS, are crucial for the success of the global decarbonisation and electrification effort, and as such they have a prominent role in the sustainable finance market.”

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