Eurogrid €750 million 1.5% bond issue

Overview:

• Berlin based energy company, Eurogrid, sold a €750 million bond to raise funds to develop its subsidiary's electricity transmission grid.
• The notes were listed on the Luxembourg Stock Exchange, have a coupon of 1.5% and mature in April 2028. 
• Commerzbank, Landesbank Hessen-Thüringen Girozentrale, ING Bank, Mitsubishi UFJ Securities International, and The Royal Bank of Scotland were arrangers on the transaction.
• Eurogrid issued the bonds under a €5 billion debt issuance programme it began in 2015.
• Eurogrid will use the cash generated from the bonds to provide finance to its subsidiary 50Hertz, an electricity transmission system operator for north and east Germany.
• 50Hertz intends to invest more than €5 billion in the next 10 years in enhancing its transmission infrastructure, and Eurogrid has undertaken a bond programme to help fund the work. 
• Belgian listed company Elia indirectly owns Eurogrid.

Ben Naylor - Regional Editor