Alliander issues €500 million Green Hybrid Bond

28 June 2024

On 27 June, Alliander successfully completed the issuance of a new Green Hybrid Bond. The loan of € 500 million has a perpetual term with the possibility to repay the loan after 8 years (perpetual non call 8 years), a coupon rate of 4.50%, and an issue price of 99.18% (effective interest rate of 4.625%). The issuance was almost six times oversubscribed. The Hybrid Bond is listed on Euronext Amsterdam (ISIN code: XS2829852842).

The bond issuance makes a significant contribution to our financing challenges arising from our large investment programme in the coming years.

About Hybrid Bonds

Hybrid bonds are (highly) subordinated bonds that share certain characteristics with shares. The yields on hybrid bonds are significantly higher than those on senior bonds.

The bonds have been placed with a broad group of predominantly international professional investors.

Green Finance Framework

Since 2019, all of Alliander’s bond loans have been green. The proceeds from this hybrid will be used in accordance with the updated Green Finance Framework of May 2024.

According to the independent rating agency ISS-ESG, the framework is fully aligned with the ICMA Green Bond Principles, the LMA Green Loan Principles, and the EU Taxonomy Climate Delegated Act, and contributes to achieving the Sustainable Development Goals (SDGs).

Another important step in enabling the energy transition.