Eurogrid GmbH, the parent company of 50Hertz Transmission GmbH, is the first German company to introduce a green financing framework aligned, among other things, with the new EU Green Bond Standard. It is perceived as “Gold-Standard” and the most advanced and ambitious framework in the financial markets in terms of asset allocation, reporting accuracy and external verification for green bonds. In addition, EU Green Bonds issued by Eurogrid will remain fully aligned with the Green Bond Principles of the International Capital Market Association (ICMA).
Eurogrid’s new Green Financing Framework will serve as the basis for other green financing instruments, such as commercial papers and loans, which adhere to the Green Bond Principles of ICMA and the Green Loan Principles of Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA) and Asia Pacific Loan Market Association (APLMA).
By adopting the EU Green Bond Standard, Eurogrid is furthering the green energy transition in Germany and its own climate strategy. The finance strategy is closely linked to 50Hertz’s strategic objective to cover total electricity consumption in the 50Hertz grid area in the course of a year with 100% renewable energy by 2032, and its ActNow sustainability programme, which targets carbon neutrality in own operations by 2030.
Stefan Kapferer, 50Hertz CEO, told The Voice of Renewables: „Eurogrid’s Green Financing Framework is an important basis for managing our high investments in the transmission grid infrastructure. It enables capital to be raised according to the latest standards and thus opens up access to attractive conditions on the financial market.”
Sustainable Fitch, one of the leading ESG-rating agencies, has provided a Second-Party Opinion on Eurogrid’s Green Financing Framework and has rated it with the highest rating category, “Excellent”.
Under the new Framework, Eurogrid is able to issue green bonds following the EU Green Bond Standard and will allocate 100% of EU Green Bond proceeds to EU taxonomy-aligned activities. As of 2024, 99.8% of Eurogrid’s capex has been taxonomy-aligned.
The EU Green Bond Standard was developed by the European Commission, approved by the European Parliament and entered into force in December 2024. Mizuho and Rabobank acted as Sustainability Advisors to the Green Financing Framework. White & Case provided legal advice.
