Stedin Group, headquartered in Rotterdam, delivers energy to more than 2.2 million private and business customers across the Netherlands through its electricity and gas grid managers Stedin and Enduris.
Stedin Group aims to facilitate the energy transition through modifying its network to accommodate new forms of energy, while taking a critical look at its own day-to-day activities.
Stedin is planning to invest €8 billion over the next ten years to future-proof its energy grid in order to facilitate a growing, sustainable economy and to offer sustainable energy to more households while ensuring through continued maintenance that the grids remain reliable and safe.
Looking to issue the second Green Bond off its recent Green Finance Framework, which is aligned to the EU Taxonomy and the relevant activity-specific Technical Screening Criteria, Stedin turned to NatWest to support in the role of Active Bookrunner. The NatWest team had structured Stedin’s debut Green Bond in 2019, which was used for installation of smart meters, integration and enhancement of transmission capacity for renewable energy in the Dutch electricity grid including investments in electric vehicle charging stations and related infrastructure, and green buildings leading to reduced energy consumption and increased renewable energy transported.
To navigate a volatile market, the Dutch company opted for an intra-day execution, supported by a virtual investor presentation. Stedin’s direct communication and the update on its sustainability strategy and progress resonated with investors who rushed to place orders when the €500 million, 8-year Green Bond was announced. Order books peaked at €1.15 billion, allowing the company to tighten the spreads twice, with the final coupon set at 2.375%.
With this issuance, Stedin attracted existing and also new ESG investors. The very high quality orderbook was driven by large lead orders from Official institutions and Asset Managers, with demand well diversified across France and Germany and complimented by very strong domestic support out of the Netherlands. Stedin, which has now issued a total of €1.5 billion of Green Bonds, will use the proceeds from this transaction to invest in a wide range of sustainable projects such as connecting new wind turbines and solar farms to the electricity grid.
Sebastiaan Weeda, Treasurer of Stedin Group, said: “We are very pleased with the continued investor support we receive, allowing us to invest into the future of our grids and in doing so providing sustainable energy to even more households and businesses.”
Daniel Bressler, Climate and ESG Capital Markets Corporates, NatWest, commented: “We’re delighted to have supported Stedin with yet another successful transaction, and we are very proud to have been at Stedin’s side since their debut in the sustainable finance market in 2019.”
Thomas Hansson, Corporate Financing & Risk Solutions NatWest, commented: “The success of this transaction is a clear testimony to the quality of the Stedin business and the importance of supporting the energy transition. This deal also demonstrates our commitment and strong run with green transactions in the Benelux region.”
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